From the desks of the Hotel News Now editorial staff:
- Accor buys Mövenpick for $565.3 million
- A roundup of earnings results from REITs, brands
- Wynn Resorts may take name off Boston project
- UK economy falls, shows weakest growth since 2012
- Aimbridge sees green light on AHIP management
Accor buys Mövenpick for $565.3 million: French hotel firm AccorHotels has bought Swiss brand Mövenpick Hotels & Resorts for 560 million Swiss franc ($565.3 million) from Mövenpick Holding and Saudi Arabian firm Kingdom Holding, according to a news release.
Sébastien Valentin, Accor’s SVP of investor relations and financial communication, said the acquisition is “in line with any comment AccorHotels has recently made,” Hotel News Now’s Terence Baker writes.
“We said we would dedicate 60% of the cash proceeds of the part sale of AccorInvest to (mergers and acquisitions) activity, and that the strategy would be hotels-driven,” Valentin said.
A roundup of earnings results from REITs, brands: First-quarter earnings season started last week, with the latest United States news coming from Pebblebrook Hotel Trust.
Pebblebrook’s Chairman, President and CEO Jon Bortz told analysts on an earnings call that a merger of his company with LaSalle Hotel Properties makes sense because “the two companies have similar strategies, overlapping focus markets, similar quality of hotels in their portfolios and a number of the same shareholders,” HNN’s Bryan Wroten writes.
The company also reported better-than-expected results in the first quarter, which Pebblebrook executives believe is coming from the return of business travel.
Wynn Resorts may take name off Boston hotel in the works: Wynn Resorts CEO Matt Maddox said he “wants to remove the Wynn name from a $2.5 billion casino project the company is building in the Boston area,” according to The Wall Street Journal.
The WSJ reports Maddox told executives at the Massachusetts Gaming Commission he proposed renaming the upcoming asset as the Encore Boston Harbor. Maddox was giving evidence to the MGC to decide whether Wynn Resorts former Chairman and CEO Steve Wynn, who resigned in February amid allegations of sexual misconduct, should still be considered legally tied to the casino project.
U.K. economy falls, shows weakest growth since 2012: While the dip of 0.1% in United Kingdom gross domestic product may not be cause for alarm, it does signify the slowest rate of the country’s economic growth since 2012, according to the U.K. government’s official statistician, the Office for National Statistics.
The previous quarter’s growth was 0.4%, the ONS told BBC News, which blamed the drop announced this weekend on a “sharp fall in construction output and a sluggish manufacturing sector.”
Aimbridge sees green light on AHIP management: The announcement made in April that Aimbridge Hospitality would take over management responsibility for all 115 properties owned by real estate investment trust American Hotel Income Properties has now completed all regulatory hurdles, according to a news release.
"We are very excited to begin working with Aimbridge as our new exclusive hotel manager, and to start realizing the benefits of their world class reporting systems, scale and purchasing power to improve margins and enhance unitholder value," Ian McAuley, president, AHIP, said in the release.
Compiled by Terence Baker.