Every week we will be delving into the world of Hotel Property thanks to our friends The Hotel Property Team (THPT). We will be covering 5 recent deals that has taken place over the last 7 days with insights from THPT Managing Partner, Dev Anand.
Premier Inn to Open New 13-storey Hotel on Doorstep of HS2
Developer Nikal agreed a lease deal with budget hotel group Premier Inn, owned by Whitbread, to build a 225-bedroom, 13 storey venue at its Exchange Square scheme
A major new residential complex on the doorstep of the planned HS2 terminal in Birmingham city centre, alongside the Premier Inn.
The hotel and Bar + Block steakhouse restaurant will be part of the second phase of Exchange Square in The Priory Queensway.
THPT Comment – Wow some serious hotel growth in the centre of Birmingham, especially in the serviced apartment/aparthotel space.
US$170M Sale of Park Hyatt Aviara was Largest Hotel Sale in Southern California in 2018
Originally owned by Broadreach Capital in 2006, who were unable to keep up payments, relinquished the hotel to it’s lender – CW Capital. However Broadreach still have The Carlyle NY, the Park Hyatt Sydney, The Biltmore Santa Barbara and were helpful in getting Rosewood off the ground, as well a bunch of office buildings across the USA.
The Broadreach venture in 2010 had re-branded the property a Park Hyatt and brought in Dolce Hotels and Resorts to replace Four Seasons Hotels as its manager. An appraisal at the time valued the property at $124.4 million.
THPT Comment – “Sellers are holding onto their assets because they think the market still has a little bit of life in the economy and are not willing to discount their property,” said Rauch, who has not purchased any hotels in the last couple of years.
UBS Asset Management Launches Open-end U.K. Property Fund
The real estate and private markets team from the asset management arm of Swiss banking giant, UBS, has launched a long income UK property fund with an initial commitment of £90 million (€103 million).
With a net income return target of 5%, the UBS Long Income UK Property Fund will allow investors to access a portfolio of UK long-lease assets with a focus on alternative sectors.
The initial investment has been used to purchase a seed portfolio of five UK hotel assets totalling more than 650 rooms.
THPT Comment – Compass, via their Lime Venue division manage a number of venues (some 87 in the UK), but not known for their hotel management as such.
Aprirose Expands and Teams up with Kew Green Hotels for New Operating Platform
The real estate investment company also owns the 26-strong QHotels portfolio of hotels, which it acquired for £525m last year, and the 275-bedroom Mercure Bristol Holland House Hotel & Spa.
Real estate investment company Aprirose has acquired 22 Marston’s-branded pubs from property investor New River for £15m, in January 2019.
The portfolio has pubs located across the UK, 15 of which will be leased back to Marston’s. The acquisition will bring the total number of pubs in Aprirose’s portfolio to 94.
THPT Comment – Aprirose are making good use of Tim Sherman’s extensive operational experience, who they bought in as CEO in 2018. Interesting move into Pubs at this time.
Marriott has Signed to Launch its Moxy Brand in Australia
Moxy Melbourne South Yarra promises a contemporary design with floor-to-ceiling windows flooding the rooms with natural light.
The hotel will offer various live/work/play spaces, including a bar, co-working space and meeting studio, as well as a rooftop bar overlooking the city skyline with access to a large veranda. The hotel gym will be fully equipped with the latest cardio and strength training equipment.
THPT Comment – Moxy will be a welcome addition to the Melbourne hotel scene. They have gone down well in the cities they are already in like London, Amsterdam, NY and Chicago.
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between them, they provide a range of skills and experience which is directly relevant to those involved in the hotel property market.
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