Double Hyatt in Scottsdale sold; Corona beer creates an island experience – HOTELSMag.com
The Dual Hyatt in Scottsdale sells for US$54.5 million: A joint venture between Gardner Batt and private investors has sold the 229-room Hyatt Place/Hyatt House in Scottsdale, Arizona to a joint venture between KKR and Riller Capital for $54.5 million. The sale was brokered by Avison Young. Jay Maddox, Keith Thompson, Andrew Broad and David Genovese of Avison Young represented the seller in the transaction. The nine-story hotel, which opened in March 2021, features an on-site restaurant, breakfast room, business center, meeting space, a heated outdoor swimming pool and a fitness center.
Taconic and HEI Acquire Westchester Marriott: Taconic Capital Advisors and HEI Hotels & Resorts have partnered to acquire the 444-room Westchester Marriott in Tarrytown, New York for US$40 million from Ares Commercial Real Estate Corp. (ACRE). As part of the agreement, ACRE will provide a financing facility in support of the property’s business plan. Spread over 15 acres, the hotel consists of 21 event rooms or 26,700 square feet of meeting space, including a 9,000 square foot ballroom that can accommodate up to 1,100 people. The hotel will continue to operate as a Marriott-branded property and will be managed by HEI. Taconic and HEI have planned a US$30 million renovation project focused on all areas of the hotel. This is Taconic’s first acquisition with HEI and the 12and global transaction, totaling 17 properties and 3,700 keys, over the past year.
Aareal Bank refinances the Nobu Hotel in London: Aareal Bank has entered into the financing agreement with London + Regional Hotels (L+R). The private London-based property and leisure investment company has received a senior loan to refinance the rebranding and remodeling of the 249-key Nobu Hotel London Portman Square, which opened in May 2021. The hotel marks Nobu’s third collaboration with L+R, following existing properties in Monte Carlo and Ibiza.
Sightline adds 3 to the portfolio: Sightline Hospitality, San Francisco, California, has added three independent hotels – evo Hotel, The English hotel and Radio Tower and Hotel – to its third-party management portfolio. The evo Hotel, which opened its doors on February 1 in Salt Lake City, in the Granary district of Utah, is the result of the transformation of a 100-year-old warehouse. Celebrity chef Todd English, The English Hotel, opened February 22 in the arts district of Las Vegas, Nevada, and is a Marriott’s Tribute Portfolio brand property. The Radio Tower and Hotel is set to open June 16 in New York City.
Corona beer creates an island experience: Scheduled to open later this year, the operator outside the United States under Anheuser-Busch InBev for the global beer brand Corona is developing Corona Island off the coast of Colombia, focused on sustainability and aiming to help consumers disconnect from everyday life and reconnect with nature. Although there is no traditional hotel on the island, Corona creates bioclimatic and sustainable building structures and 10 guest bungalows that can accommodate two people. The structures were built with nature in mind and will be anchored with locally sourced materials, so as not to disturb the natural environment of the island. Corona works with local developers and designers Jaime Gaztelu and Mauricio Galeano Escobar of Hames & Mau to create a unique experience for those staying on the island. Corona Island aims to become “Blue Verified”, under the international NGO’s Blue Standard program. In addition to design and cuisine, Corona Island’s guest experience will focus on workshops and excursions that immerse guests in a sustainable lifestyle.
Limited impact of gas prices on demand: Performance has picked up again among US hotels. However, this recovery is facing potential headwinds from Russia’s war on Ukraine and resulting gas price increases. Historical data from STR suggests that rising gasoline prices should not weigh on hotel demand in the United States, even as the cost of leisure and business travel increases. Gasoline prices are at a record high but are below the July 2008 peak on an inflation-adjusted (real) basis. STR data from 1990 shows that the correlation between real gas prices and room demand (seasonally adjusted) is moderate at 0.54, indicating that a very small part of the variation in demand can be attributed to changes in gas prices. A strong correlation would be considered 0.7 and above. The correlation between gas prices and real income per available room is only 0.16. Historically, gasoline prices have peaked when demand for accommodations is greatest (i.e. during the summer). While typically travel is geared toward high-income families who are able to afford the high costs, pent-up travel demand due to the pandemic is also expected to offset the negative impact of gasoline prices. Airlines are likely to raise fares, with business travelers attributing it to the “cost of doing business” and are unlikely to affect demand from transient companies and groups.
Omnibus “big win” spending bill passed: Passage of the US$1.5 trillion omnibus spending bill, which includes the Restoring Brand USA Act to provide US$250 million in relief funding to the nation’s destination marketing organization , is a “major victory for the travel industry in the United States,” said the president of the US Travel Association. and CEO Roger Dow in a statement. “While international travel spending remains 78% below pre-pandemic levels, the relief provided by the bill – which uses existing funds at no cost to U.S. taxpayers – will help the international travel segment to bounce back faster and restore jobs in the United States,” Dow said. “Brand USA has historically garnered strong bipartisan support due to its focus on promoting urban and rural destinations, as well as its strong return on investment, which averages $26 for every $1 spent on marketing activities.”
