In this week’s roundup of news from the Americas region: Blackstone to buy LaSalle; post-hurricane Caribbean shows opportunity; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
LaSalle declares Blackstone deal while Pebblebrook ups offer
LaSalle Hotel Properties officials announced on 21 May the agreement to sell the company to Blackstone Real Estate Partners VII in an all-cash transaction for roughly $4.8 billion, reports Hotel News Now’s Sean McCracken. However, Pebblebrook Hotel Trust officials are continuing their pursuit of the real estate investment trust with an increased offer of their own.
The deal between Blackstone and LaSalle is expected to close in the third quarter of 2018, pending approval of the REIT’s shareholders.
Pebblebrook has been in pursuit of purchasing LaSalle for months. Following the announcement, Pebblebrook officials announced a proposal of $36.49 per share, up to 20% of which could be paid out in cash. Its previous issued offer was $32.49 per share and up to 20% paid out in cash.
Rebuilding in post-hurricane Caribbean shows opportunity
Though rebuilding hotels and resorts after a wave of hurricanes is no easy task, experts in the Caribbean hotel industry believe the efforts show opportunity and allure in the region is still there, according to speakers at the recent Caribbean Hotel & Resort Investment Summit.
And experts agreed that in many areas, high standards of building already exists, and it’s more about tweaking the rules and doing a better job of adhering to the existing building codes.
“Generally speaking, we’ve built to those codes for 15 to 20 years, and people expect it to cost a little more,” said Mark Durliat, CEO of Turks and Caicos-based Grace Bay Resorts. “There may be some changes to some things, but they’ll be very small. It’s more about the details than actual code.”
Exceeding brand standards leads to successful select service
To maximize return on investment, developers of select-service hotels need to install capital improvements that exceed brands standards, reports HNN’s Editorial Director Jeff Higley, at the recent Meet the Money conference.
R.D. Olson Development is an example of a company that is a leader in the “cut-above” space, panelists agreed.
“(Olson) is building in top markets that can get (average daily rate),” said Sam Reynolds, EVP and director of acquisitions/dispositions and portfolio management at Apple Hospitality REIT, who added that his company has bought a number of hotels from R.D. Olson. “You’re not seeing the prototypical deals across the country; you’re seeing some sort of uniqueness and where you can get the rate, you can drive the rate, you can justify doing some nice upscale improvements to these during development.”
Brazil hotels could see major rebound post-recession
Political uncertainty and a major recession in Brazil’s history have made things difficult for hoteliers in the region, but experts say the country might be on the cusp of a rebound, reports HNN’s McCracken, while at the recent Hotel Opportunities Latin America conference.
“The market has started to recover,” said Diogo Canteras, managing partner for HotelInvest and HVS South America. “I think there’s going to be a very steady recovery period in the coming months and years. It’s going to be slow growth—not strong growth—but it’s going to be steady.”
STR: US, Canada weekly numbers
The U.S. hotel industry reported mixed year-over-year results in the three key performance metrics during the week of 13-19 May, according to data STR, parent company of HNN.
Occupancy decreased 0.5% to 70.2%, average daily rate was up 3.5% to $132.36, which drove revenue per available room up 3% to $92.92.
Meanwhile, the Canadian hotel industry reported positive year-over-year results during the same week, according to STR.
Occupancy was up slightly at 0.7% to 68.5%, ADR increased 2.7% to $158.57 Canadian dollars ($121.77), and RevPAR was up 3.4% to CA$108.66 ($83.44).
Deals and developments
- An affiliate of White Lodging Services Corporation has acquired the 311-room Marriott Nashville Hotel at Vanderbilt University.
- The $550-million Omni Boston Seaport Hotel broke ground in late May. The hotel is set to open in 2020 with 1,055 rooms.
- The Charter Hotel, part of Hilton’s Curio Collection, is set to open this September in Seattle with 229 guestrooms and more than 6,000 square feet of meeting space.
- The Viceroy Hotel Group has opened its 15th property worldwide with its 194-key Viceroy Los Cabos in San José del Cabo, Mexico.
- Hilton announced the signing of two Tapestry Collection by Hilton agreements in Lima, Peru. The two hotels are the 117-room Bel’Arte Lima and 86-room Hotel Museo de Osma. Both are expected to open in 2021.
Compiled by Dana Miller.