Melia Hotels and UAE Investor May Sign $1 Billion Joint Venture

Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.

Sunday, April 30

In June, SJM will open the 271-room Karl Lagerfeld Hotel on Cotai in Macau. The project was initially unveiled in 2014 but was delayed for various reasons including the pandemic. The Karl Lagerfeld is part of the Grand Lisboa Palace luxury development. Located in a 20-story tower, the five-star Lagerfeld hotel has spacious rooms and suites ranging from 650 square feet to 3,750 square feet with headboards on king-sized beds inspired by Chinese coins and vases handmade in Jingdezhen. The Book Lounge features some 4,000 volumes as part of the décor.

The South China Morning Post said Magnificent Hotel Investment plans to spend up to about $250 million (HK$2 billion) to increase the number of rooms in its portfolio by a third. Magnificent already owns nine hotels, with seven in Hong Kong, one each in Shanghai and London. If they accomplish their goal, they would become one of the five largest hotel operators in Hong Kong. Their latest acquisition was the Bay Bridge Lifestyle Retreat, a 435-room waterfront hotel in the New Territories overlooking Tsing Ma Bridge. Read: “Hong Kong hotel property buying spree looms as investors bet on tourism rebound, analysts say.”

The Rosewood Ranfaru in the Maldives is expected to open in 2027, stretched across a striking chain of private islands around a pristine lagoon in the South Male Atoll, situated less than an hour away from Velana International Airport in Male. The Rosewood Ranfaru will offer approximately 120 beachfront and overwater villas, ranging in size from one to five bedrooms, all with private pools and a select number located on private islands.

Indian Hotels Company said they plan to add another 20 hotels to its domestic portfolio in FY24 and another 2-3 internationally while they are on track to reach 300 hotels by 2025. They opened 16 new hotels in FY23, and in the current fiscal they intend to open another 20 hotels in India across their Taj, Vivanta, SeleQtions and Ginger brands in major locations. They are opening a Taj hotel in Vikhroli in Mumbai with Godrej Group and a new Ginger at Santacruz in Mumbai. The Taj will be a management contract and the Ginger wholly owned by the company. IHCL is also looking to open about 2-3 hotels in Bhutan, Sri Lanka, or Nepal as well as opening hotels in global destinations.

Skift Take: For context, see Skift’s piece on Rosewood’s strategy and our piece on Indian Hotels Company Ltd’s first-quarter earnings and the overall strategy of the Indian powerhouse.

Monday, May 1

A solid beat and raise was repeated over and over again today by analysts when commenting on Park Hotels & Resorts’ earnings report. It is not like it is all back to normal as their exposure in San Francisco continues to hold back their recovery but this was one of the best reports we have seen from PK since the pandemic hit. Hawaii RevPAR was up 26% in the quarter even without a lot of Japanese demand. PK said they repurchased $105 million worth of stock in 1Q, also higher than expected. For 2023, PK is expecting RevPAR growth of 7% to 14%, something we suspect they will narrow as the year rolls on.

One of Scotland’s most famous city hotels is set to be marketed to be sold. The React News publication said the Sheraton Grand Hotel and Spa in Edinburgh is primed for about $125 million (£100 million-plus) sale, with an adviser appointed to offload the 270-room asset.

Lifestyle aparthotel brand Locke announced it would open its sixth Locke in London in July 2023, with the brand expanding to the city’s exclusive Kensington and Chelsea neighborhoods. The aparthotel, spread across eight floors, will comprise 121 apartments, a lobby, common areas, a coffee shop, bar, restaurant, co-working space, meeting room, garden, gym and laundry room.

Skift Take: For more on Locke, read Blackstone-Funded Edyn Aims to Glam Up Europe’s Extended-Stay Hotel Market.

Tuesday, May 2

Oyo said it turned cash flow positive in the fourth quarter of FY2023 in an internal note to employees. The Hindu Business Line said their sources told them the company expects to end the quarter with nearly Rs 90 crore surplus cash flow. “The Europe home business is what is leading the profits while the change in focus to premium hotels is also beneficial.”

Wyndham Hotels & Resorts unveiled the 1,399 room Wyndham Grand Phu Quoc, the largest Wyndham Grand hotel in Asia Pacific. The opening marks the company’s entry into Phu Quoc and joins a portfolio of 14 other Wyndham hotels throughout Vietnam. The hotel will have 27 newly constructed villas opening later this year. Wyndham partnered with Phu Quoc Tourism Development and Investment Joint Stock Company on the hotel. Wyndham Hotels & Resorts also announced four new key signings and two new openings in the Australasian market.

Skift Take: For more on Oyo, read “Oyo Drops Brand Guidelines for Competitive Edge as It Expands in the U.S.”

Wednesday, May 3

The DJIA fell 270 points while Nasdaq was down 55, the S&P 500 fell 29 points and the 10-year treasury yield was down .04 to 3.40%. Things were going ok until the Fed Chief held his conference call after raising rates again. The same thing happened that has happened nearly every one of his conference calls the past year or so. AHT was the big winner today, up 25%, while SLNA fell to another new low, down -10%, just 32 cents from joining the other lodging Spacs as a penny stock.

LIIC – The Lodging Industry Investment Council is annually surveyed to develop a list of the major hotel investment opportunities and challenges for the upcoming year. Mike Cahill, CEO and Founder of HREC, and LIIC co-chairman, produced this year’s survey. 56% of those surveyed believe the total dollar volume of U.S. hotel transactions in calendar 2023 relative to year-end 2022 will decrease overall, while 35% predict an increase.

Radisson Hotel Group and La Vie Hotels & Resorts announced the signing of a Master Collaboration Agreement to add over 30 hotels to the Group’s portfolio over the next 10 years. La Vie Hotels & Resorts is a unit of La Vie Hospitality Group. The Master Collaboration Agreement will see RHG become La Vie’s preferred partner, enabling La Vie to develop, manage and operate properties under Radisson Blu, Radisson RED, Radisson, Park Inn by Radisson and Country Inn & Suites by Radisson brands, under a non-exclusive brand collaboration agreement. RHG said the collaboration would drive their expansion in key strategic growth markets including Australia, New Zealand, Vietnam, Thailand, Singapore, Cambodia, Myanmar, Malaysia, Indonesia, Sri Lanka, Maldives, Bangladesh, Fiji, and Vanuatu. The two parties began their relationship in 2022 through the rebranding and conversion of three hotels in Sri Lanka.

Mandarin Oriental announced that Laurent Kleitman will be taking over for James Riley as group chief executive from September 1, 2023. Kleitman was most recently the president and chief executive of Parfums Christian Dior. Riley, who was group chief executive of Mandarin Oriental since 2015, will be stepping down on July 31, however, he will be available to support the management team until Kleitman begins his new role.

Skift Take: For more on Radisson’s strategy, read this Skift profile and this follow-up interview with its CEO.

Thursday, May 4

Host Hotels had a lousy two days in which to issue a great report with a clean and positive beat and raise. They bought back $50 million worth of stock in the quarter, and sold the Camby, Autograph Collection hotel in Phoenix for $110 million. It continues to have one of the best balance sheets, if not the best, in the Lodging REIT space.

Melia and the Abu Dhabi Investment Authority are reportedly closing in on a deal to create a new joint venture in Spain with 1 billion euros of assets under management. According to El Confidencial, assets will include the Equity Inmuebles 17-hotel portfolio valued at 700 million euros as well as Melia’s Calvia Beach project, which includes seven properties at around 300 million euros.

The longtime former headquarters of Outside magazine at the north edge of the Railyard District in Santa Fe, New Mexico, will become a boutique hotel. State Properties of New Mexico, LLC purchased the property, has begun a teardown.

Robert and Gina Parker, owners of luxury boutique hotel group, The Robert Parker Hotel Collection, have decided to retire and sell the group’s four properties. Dalhousie Castle and Aqueous Spa in Edinburgh, Ednam House Hotel in Kelso, Doxford Hall Hotel and Spa in Alnwick, and Eshott Hall in Morpeth have been brought to the market by Christie & Co.

Radisson Hotel Group announced the signing of its first affordable, high-design prizeotel property in the UK and Ireland region Scheduled to open in Q1 2025 in Dublin, the newly-built prizeotel Dublin will feature 145 rooms and a restaurant and bar.

The American Hotel & Lodging Association said Kat Fonda has been named AHLA’s Director of Federal Affairs. Shreya Kanal has been named Manager of Government Affairs.

Skift Take: For more on Spain hospitality giant Melia, see our recent story: “Spain’s Melia Looks for Partners to Grow Premium Resort Portfolio.” Looks like it found a partner.