Marriott partners with Lazizi Group for luxury safari camps in Kenya; Hyatt initiates tender for Playa Hotels, valued at $2.7 billion; Palladium begins $20M project in Jamaica with new rooms; Apple Hospitality reports strong earnings growth; HPI modifies loans for Hotel Indigo; Fertitta becomes principal shareholder of Wynn Resorts; Canada hotels show positive performance; Middle East hotel pipeline sees growth; Radisson announces new hotel in India.
Marriott International is embarking on a new venture in Kenya, collaborating with the Lazizi Group to introduce two luxury tented safari camps. The Ritz-Carlton, Masai Mara Safari Camp, and the JW Marriott Mount Kenya Rhino Reserve Safari Camp will each offer 20 keys. Set to open in August 2024 and early 2026, respectively, these additions follow Marriott’s JW Marriott Masai Mara Lodge launch in 2023, expanding its portfolio to seven properties with over 1,100 rooms in Kenya.
Hyatt Hotels has initiated a tender offer for Playa Hotels & Resorts, eliciting preliminary interest in the acquisition of Playa’s real estate portfolio. Analyst Michael Bellisario from R.W. Baird remarked positively on the potential sale of Playa’s properties, contributing to the anticipated total deal valuation of $2.7 billion. The offer remains valid until April 25, requiring at least 80% of Playa shares to be tendered.
In Jamaica, Palladium Hotel Group, in collaboration with Grupo Empresas Matutes, has commenced a $20 million expansion project at its Grand Palladium Hotels & Resorts in Montego Bay. This initiative will introduce over 948 new rooms, enhancing the existing accommodation capacity of 1,049 rooms spread across two hotels: the Grand Palladium Lady Hamilton Resort & Spa and the Grand Palladium Jamaica Resort & Spa.
Apple Hospitality REIT reported a 2.7% increase in Revenue Per Available Room (RevPAR) for Q4 year-over-year, attributing the growth to rising business transient demand. The company also noted an Adjusted EBITDA of approximately $108 million, reflecting a 3% annual increase. In 2024, Apple acquired two hotels and sold six, generating a combined gain of about $19.7 million from the sales, including various properties in Kansas, Tennessee, and Texas.
Hamilton Point Investments has successfully secured a loan modification for its 241-key Hotel Indigo in Detroit. This modification, facilitated by CooperWynn Capital, enables the firm to retain its existing loan terms while removing some burdensome covenants previously associated with the financing.
Tilman Fertitta, owner of the Golden Nugget in Las Vegas, has become a principal shareholder of Wynn Resorts, having acquired nearly 12.6 million shares, surpassing the 10% ownership threshold. This development makes him Wynn’s largest individual shareholder after he increased his stake from 9.9% last year.
Canada’s hotel sector reported positive performance in January, with occupancy rising to 49.8%. Average Daily Rates (ADR) also grew to CAD180.04, resulting in a RevPAR of CAD89.60. British Columbia led all provinces in occupancy at 52.9%, whereas Vancouver registered the highest market occupancy at 60.7%, despite a slight year-over-year decrease.
The Middle East hotel pipeline continues to expand, with Saudi Arabia and Egypt leading in Q4 developments. Presently, the region boasts 619 projects, accounting for 155,428 rooms. The luxury segment remains particularly robust, and the pipeline features 179 luxury projects, evidencing an overall increase in growth prospects within the hotel industry.
Radisson Hotel Group has announced the signing of the Era Hotel Bhubaneswar, which will be part of Radisson Individuals in India. This hotel, scheduled to open in the latter half of 2025, signals further growth and diversification within Radisson’s portfolio.
The recent developments across various hotel chains indicate a positive trend in the hospitality industry, characterized by expansions and partnerships strategically positioned to enhance luxury offerings. Marriott is expanding its footprint in Africa, while Hyatt explores growth through acquisitions. The ongoing projects in Jamaica and Canada reflect resilience in hotel performance, and with substantial pipelines in the Middle East and India, the sector remains poised for growth.
Original Source: www.hotelinvestmenttoday.com
