5 things to know: 29 August 2018
5 things to know: 29 August 2018
29 AUGUST 2018 9:30 AM

From the desks of the Hotel News Now editorial staff:

  • Chinese government investigating Huazhu data breach
  • Analysts believe Pebblebrook holds lead in LaSalle pursuit
  • Survey indicates wages moving up
  • Dalata picks up London hotel development
  • Xenia Hotels & Resorts buys Denver Ritz for $100m

Chinese government investigating Huazhu data breach: Authorities in China have acknowledged they’re investigating a possible breach of information from Huazhu Group—which until recently was referred to as China Lodging in the west—Reuters reports. The potential breach came to light after Chinese media reported “nearly 500 million pieces of customer-related information from the hotel operator had emerged in an online post.”

Reuters notes information included in that post Tuesday was “customer registration information, personal data and booking records.”

Analysts believe Pebblebrook holds lead in LaSalle pursuit: Hotel News Now senior reporter Bryan Wroten spoke to hotel industry analysts to see where they think things are headed in the ongoing battle over LaSalle Hotel Properties’ assets. And while LaSalle still has a deal in place with Blackstone Real Estate Partners VII, analysts now believe Pebblebrook Hotel Trust is the most likely victor when the dust settles.

That thinking is based on the current offers on the table from Pebblebrook and Blackstone, though.

“The big question is will Blackstone raise their offer and, if so, by how much, or do they just walk away?” C. Patrick Scholes, managing director of lodging, gaming and leisure equity research at SunTrust Robinson Humphrey, said. “If they do raise their offer, what does Pebblebrook do in that scenario? Do they have to raise their offer? That’s the big-game theory going on with investors.”

Survey indicates wages moving up: A new survey from Willis Towers Watson indicates that U.S. workers are in line for “slightly higher pay raises in 2019,” according to a report from USA Today.

In a written statement attributed to Willis Towers Watson North American business leader Sandra McLellan, the company pointed to the low unemployment rate as a driver for the raises.

"After a decade of consistently flat pay raises, we are witnessing a slight uptick as companies are feeling pressure to boost salaries, given the low unemployment rate and the best job market in many years," she said. "While companies have been able to hold the line on raises, the tides are changing."

Dalata picks up London hotel development: Officials with Dublin, Ireland-based Dalata Hotel Group have announced the acquisition of a 300-year leasehold interest in a hotel under development in London for £91 million ($117.2 million), according to a news release. The development site is in Aldgate and was owned by an international private equity real estate investor.

The property, called the Clayton Hotel Aldgate London, is expected to open near the end of 2018 and will have 212 rooms.

Xenia Hotels & Resorts buys Denver Ritz for $100m: Orlando, Florida-based Xenia Hotels & Resorts has announced the acquisition of the 202-room Ritz-Carlton, Denver, for $100-million, according to a news release. The hotel real estate investment trust said the hotel was purchased for $100.25 million or $496,000 per key and at a 14.6-times multiple when looking at 2018 forecasted hotel earnings before interest, taxes, depreciation and amortization.

The purchase marks the 39th property in Xenia’s portfolio, which focuses on luxury and upper-upscale hotels.

Compiled by Sean McCracken.

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