In this week’s roundup of news from the Americas region: Outlook on deals pace and bid-ask spread; recovery in Central America; execs’ views on development, lending, design; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Deals expected to pick up with bid-ask spread closing
Members of the Lodging Industry Investment Council during an online meeting said they are already seeing signs of hotel transactions picking up as potential buyers wait for the right time to act, writes Hotel News Now’s Bryan Wroten.
Carlos Rodriguez Sr., president and CEO of Driftwood Capital, said his company is actively buying hotels, with 200 contracts it intends to purchase in the near future. Driftwood Capital is looking to return to 2019 numbers by 2023. He anticipates a mountain of deals cropping up within in the next three to six months.
Additionally, Mike Cahill, founder and CEO of Hospitality Real Estate Counselors, said the bid-ask gap spread is getting smaller, partly due to a realistic view sellers have about the value of their properties and the amount of equity that wants to invest in hotels.
Central American hotels face prolonged recovery
Sources believe the next few months could be make or break for resorts and hotels across Central America, writes Hotel News Now’s Sean McCracken from the CHRIS+HOLA Connect online conference.
Speaking during the “A spotlight on Central America” session at the conference, Fernando Poma Kriete, VP and managing director of Real Hotels & Resorts, said September and October are “crucial months” for hoteliers and investors across the region as countries reopen to some international travel.
“We’re starting to see the first signs of pickup in terms of the business,” he said. “So right now, I’d say what we can do is be extremely conscious of our cash position and try to save as much as possible.”
Gustavo Ripol, partner at InterAmerican Development, said cost cutting and maintaining cash will be ever important as the recovery period could extend out as far as 2024.
How execs view hotel development, lending, design
Speakers during the online 2020 Southern Lodging Summit provided their outlook for new hotel development, investment in distressed assets and design and operational changes looming for hotels, writes Hotel News Now’s Dan Kubacki.
During the “Visionary viewpoints: Crisis leadership” panel, John Koshivos, VP and managing director of development of the Southeast Region at Hilton, said his hotel development outlook is at a “period of cautiousness.”
He said there’s a mix of conservative holders, opportunistic builders and aggressive buyers.
Deals, developments, people on the move
- South Carolina-based hospitality management, development and operating group Raines has added The Foundry hotel to its management portfolio. The 87-room The Foundry, a Curio Collection by Hilton, is in Ashville, North Carolina.
- Marcus & Millichap announced the sale of the 123-room USA Hostels hospitality asset in downtown San Francisco for $19 million. Marcus & Millichap represented the seller and procured the buyer, who is a private investor with several Bay Area properties.
- Liz Johnson has been appointed director of sales and marketing for Salmon Falls Resort and its sister property, Edgewater Inn & Marina, both in in Ketchikan, Alaska.
- Marcus Hotels & Resorts has appointed Andrew Flack as its first ever chief commercial officer.
- The Seagate Country Club in Delray Beach, Florida, has added three new members to its leadership team: John Michael Phillips as director of rackets, Jason Rouk as director of agronomy, and Daniel Williams as assistant wellness director.
Compiled by Dana Miller.