5 things to know: 13 November 2017
5 things to know: 13 November 2017
13 NOVEMBER 2017 11:11 AM

From the desks of the HNN editorial staff:

  • Dublin needs 15% demand boost to offset supply
  • London budget hotel sells for almost £50m
  • STR: The average length US properties stay with their brands
  • UK pound dips on rumors of political instability
  • Aspen REIT files initial public offering

Dublin needs 15% demand boost to offset supply: According to a joint report from Crowe Horwath and Cushman & Wakefield, Dublin will need to see demand rise by 15% over the next five years if it wishes to maintain its current profit and occupancy levels.

The findings add that year-to-date 2017 hotel transactions are down 60% from the same period in 2016. While Dublin’s rooms pipeline measures 13,500, only approximately 2,500—or 18.5%—will be open by the end of 2019.

London budget hotel sells for almost £50m: Located on the doorstep of the Tower of London and Tower Bridge—two of London’s most iconic landmarks—the Travelodge Hotel at Tower Bridge has been sold by real estate company Aprirose for £47.1 million ($61.7 million), according to CoStar.

The sale to CCLA Investment Management on behalf of Local Authorities Mutual Investment Trust represents a net initial yield of 3.6% on the 190-room property, according to the news report. In September, Aprirose bought the 26-asset QHotels portfolio for a reported £525m ($688 million).

STR: The average length U.S. properties stay with their brands: Jan D. Freitag, SVP of lodging insights at STR, the parent company of Hotel News Now, has analyzed U.S. property-brand affiliation, with his main conclusion being that economy hotels outlast all other chain scales in regards to their first brand affiliation. But the average length of a brand affiliation decreases as a hotel property ages.

One surprising piece of data is that for luxury chains, the first affiliation is somewhat unstable, a finding that could be explained by the fact that owners change more often in the higher segments, which results in an increased desire and opportunities to reflag.

U.K. pound dips on rumors of political instability: The Wall Street Journal reports the United Kingdom’s pound sterling has taken a noticeable dip against currencies such as the U.S. dollar and the euro on rumors that 40 members of Parliament have signed a letter of no confidence in the Prime Minister Theresa May, and want her to resign.

The pound fell 0.8% against the U.S. dollar and 0.7% against the euro. The speculation comes at a time when the British government is starting a new round of talks on Brexit negotiations with the European Union.

Aspen REIT files initial public offering: The newly formed single-asset real estate investment trust Aspen REIT has filed for an initial public offering with the Securities and Exchange Commission to raise about $33.5 million in gross proceeds, according to a news release.

The REIT’s goal is to invest most of its net proceeds from the IPO combined with the equity in its subsidiary operating partnership to acquire 100% indirect interest in the 179-room full-service St. Regis Aspen Resort in Aspen, Colorado.

“We plan to bring to the market a first-of-its-kind real estate offering that provides individual investors with the opportunity to own shares in a highly attractive, trophy asset in the St. Regis Aspen Resort,” said Stephane De Baets, president and CEO of Aspen REIT. “Historically, the chance to own a portion of an individual property of this caliber and stature was only available to institutions. With our offering, we are changing this model while at the same time providing individual investors with liquidity optionality for a single-asset investment. Our value proposition is innovative and, we believe, highly compelling.”

Compiled by Terence Baker.

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