From the desks of the Hotel News Now editorial staff:
- La Quinta files to spin off new real estate company
- Hilton reports positive Q2 performance despite calendar shifts
- Sunstone acquires Oceans Edge Hotel & Marina for $175m
- Galt House Hotel notifies guests of security breach
- HHI sells entire stake in Hotel Hyundai for $180m
La Quinta files to spin off new real estate company: La Quinta Holdings filed a Form 10 Registration Statement with the U.S. Securities and Exchange Commission to separate its real estate business into its own publicly traded company, known as CorePoint Lodging, while La Quinta retains its franchising and management business, writes HNN’s Sean McCracken.
“We believe this separation will result in greater strategic clarity, with distinct management teams that can fully activate and run the respective businesses,” La Quinta Holdings President and CEO Keith Cline said in a news release. “In addition, we expect this will allow us to unlock growth opportunities that are embedded within each business and take advantage of capital market and tax efficiencies. We look forward to completing this spin transaction, realizing significant benefits for both companies and continuing to generate long term value for La Quinta's shareholders.”
Cline first spoke about spinning off the real estate business at the beginning of the year and later explained why a select-service-focused real estate investment trust would be unique in the industry.
Hilton reports positive Q2 performance despite calendar shifts: The holiday shifts of Easter and the Fourth of July as well as uncertainty over the economy created some challenges for Hilton during the second quarter, reports HNN’s Robert McCune, but company executives said Hilton will continue to grow.
“It could be more positive, I think, if people had a little more certainty around what was going to happen with some of these big things that are swirling about legislatively,” Hilton President and CEO Chris Nassetta said, specifically referring to tax reform and health care. “People are cautiously optimistic in the sense that they see the economy is continuing to show decent resiliency, obviously positive growth. I think everybody would like to see a little bit more clarity on public policy on some of the things they care about the most, to unleash a little bit more optimism in hiring, spending and consequently demand for hotel roomnights.”
Sunstone acquires Oceans Edge Hotel & Marina for $175m: Sunstone Hotel Investors purchased the 175-room Oceans Edge Hotel & Marina in Key West, Florida, for $175 million, according to a news release. The company also closed on the sales of the 199-room Marriott Park City in Park City, Utah, for a gross sale price of $27.6 million.
“The acquisition of Oceans Edge Hotel & Marina demonstrates a continuation of our strategy to recycle capital into higher quality, long-term relevant real estate while maintaining an industry leading balance sheet with ample investment capacity,” President and CEO John Arabia said in the release. “Over the past 19 months, we have sold nearly $735 million of real estate and used a portion of those proceeds to return capital to our shareholders, to strengthen our already low-levered balance sheet and to redeploy proceeds into exceptional real estate.”
Galt House Hotel notifies guests of security breach: After learning of a potential information security incident, The Galt House Hotel began an investigation and determined on 26 June that malware was installed on its payment card processing system, according to a news release. The payment card data included cardholders’ names, payment card account numbers, card expiration dates and verification codes.
The investigation found the breach affected certain guests who used their cards at the hotel between 21 December 2016 and 11 April 2017, the release states. The company and its hired computer forensics firm have “resolved the issue” and are working to strengthen its systems.
HHI sells entire stake in Hotel Hyundai for $180m: Hyundai Heavy Industries sold all of its shares in Hotel Hyundai for 200 billion South Korean won ($180 million) as part of its management improvement plan, according to Seatrade Maritime News.
The shipbuilding company sold its shares to private equity investment firm Hahn & Company.
Compiled by Bryan Wroten.