Stratus
$48.75M recapitalization. Newport Beach, California-based Stratus Development Partners, in
collaboration with Choice Hotels International, secured $48.75 million in
bridge financing from Benefit Street Partners on August 9 to pay off the
construction lender and fund an upfront reserve for the 212-key Cambria Hotel
Austin Downtown in Texas. Hunter Hotel Advisors assisted with the transaction.
The hotel opened last October.
Loews
plans Universal hotel. Loews Hotels & Co. plans to develop a hotel next to the Universal Orlando Resort in Florida with the 500-key Universal
Helios Grand Hotel, a Loews Hotel. Loews will be a co-owner and operator of the
hotel, which is scheduled to open in 2025. The property will be the first
Universal Orlando hotel to have its own theme park entrance.
Greenbrier
avoids sale. The historic
Greenbrier hotel in West Virginia will not be sold on August 27 after the owner,
Gov. Jim Justice, and his company reached an agreement with Beltway Capital. The
deal includes the Justice Companies making a payment to Beltway Capital on
October 24.
US performance mixed.
Hotel performance in the U.S. last week was mixed, according to CoStar data. For the week of August 11-17, occupancy was 66.9% (down 0.2%), ADR
was $156.35 (up 1%) and RevPAR was $104.54 (up 0.9%). Among the Top 25 markets,
Houston saw the highest year-over-year increases in each of the three key
performance metrics: occupancy (up 34.3% to 75.3%), ADR (up 14.5% to $121.89)
and RevPAR (up 53.8% to $91.73). The steepest RevPAR declines were in San
Francisco (down 13.8% to $143.39) and Atlanta (down 11.3% to $69.43).
Canada hotels down in July. After three consecutive months of year-over-year increases, Canada’s hotel industry recorded a decline in occupancy, according to CoStar data. In July, occupancy was 75.2% (down 0.4%), ADR was CAD236.12 (up 1.1%) and RevPAR was CAD177.62 (up 0.7%). “Though most segments grew year over year, group occupancy continued to decline, down 8.5%, which was the steepest drop since March,” said Laura Baxter, CoStar’s director of hospitality analytics for Canada. Prince Edward Island recorded the highest occupancy level (81.2%) among the provinces and territories, while Vancouver saw the highest occupancy (85.7%). The lowest occupancy among provinces was reported in Saskatchewan (63.4%).
Debt fund from Avana, Oaktree. Glendale, Arizona-based Avana Companies and funds managed by Los Angeles-based Oaktree Capital Management have formed a new $250 million fund to provide debt financing over the next three years for hotels and other commercial real estate in the U.S. The Avana-Oaktree Private Credit Partnership will provide small- and medium-sized CRE companies with access to capital through bridge and construction loans.
Monterey
Bay reopens. Los
Angeles-based Ascendant Capital Partners, Irving, Texas-based Highgate and New
York City-based Centerbridge Partners have reopened the 192-key Monterey Beach
Hotel, a Marriott Tribute Portfolio hotel, after a significant renovation and
rebranding. It is the only beachfront hotel along the Monterey Peninsula.
BWH debuts in South Australia. BWH Hotels has introduced its legacy Best Western brand to South Australia with the opening of its third property in the state, the 31-key Best Western Adelaide Airport. The hotel, which was signed in June, has been rebranded and reopened in partnership with Across Australia Parks and Resorts Pty Ltd (AAPR).
Famous
Scottish hotel for sale. The George Hotel, Inveraray, a 24-key Scottish hotel that has been owned
by the same family since it opened in 1860, has been brought to market. Smith
and Clough Business Associates and Christie & Co. are handling the sale.
Hilton
adds in Munich. Hilton is partnering with a joint venture of Commerz Real AG and Hines to form
a long-term agreement for the Hilton Munich Park. The hotel will close at the
end of 2024 and undergo extensive renovations, which are scheduled to be
completed in 2029.
Accor
adds 2 in Malaysia. Accor is partnering with Worldwide Hotels Group for two new properties in Kuala
Lumpur, Malaysia. Both are scheduled to launch in the first quarter of 2025.
The 325-key Grand Mercure in Kuala Lumpur will be the first Grand Mercure
branded hotel in Malaysia, and the 168-key ibis Styles will expand its presence
in Malaysia with the new location.
Pan
Pacific adds in Malaysia. Singapore-based Pan Pacific Hotels Group will add the 368-key
Gurney Bay Hotel, a PARKROYAL Hotel, to its portfolio in Malaysia. This is the
fourth hotel it has added in Asia in 2024. Pan Pacific is scheduled to take
over operations on September 1. This will be its seventh property in Malaysia.
