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.
citizenM Unveils Plans for Latest London Property
citizenM has announced the acquisition of a Victoria property for its fourth London hotel, opening in 2021.
The hotel will comprise basement and ground floor levels, with ten upper floors.
Construction will commence in May 2020, following the demolition of the existing Denison House, which will begin in November 2019.
The guest rooms will include citizenM’s famous XL king-sized beds, powerful rain showers and large flat screen TVs.
THPT Comment – citizenM’s fourth hotel in London, to complement their other 30 hotels (open and under development) and 7,000 rooms. Congrats to owner Rattan Chadha and Micheal Levie and his management team.
Greene King to be Sold to Hong Kong Company in £4.6b Deal
: Greene King, the UK’s largest pub retailer and brewer. It is based in Bury St Edmunds, Suffolk, England. The company owns pubs, restaurants and hotels. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
The company is more than 200 years old, who been running pubs and brewing since the company was founded in 1799 by 19 year-old Benjamin Greene.
Greene King is to be sold to the Hong Kong-based buyer in a deal that gives the brewery and pub group an enterprise value of £4.6b.
CKA will pay £2.7bn for the business, based in Bury St Edmunds, Suffolk, and take on £1.9bn of debt.
THPT Comment – OK – is it coincidence that CEO, Rooney Anand jumped ship just a few months back to take up the new role as Chairman of Casual Dining Group…? Probably! With their hotel heritage, will the new owners be keen to develop the hotel stock further?
Indian Oyo Hotels & Homes, in Partnership with Highgate, Buys Hooters in Las Vegas to rebrand as Oyo
In partnership with Highgate, real estate investment and hospitality management company, paid a reported US$135m for the Hooters asset.
The hotel will undergo a refit before reopening later this year, and will be managed by Highgate. Oyo has announced plans to invest US$300m growing its presence in the US hotel and home rental markets.
The hotel will be a conversion of the Hooters Casino Hotel, and will have 657 rooms across 19 floors and a 35,000 square-foot casino. Public space will include two signature restaurants, four bars, a fitness centre and an outdoor pool.
The property will undergo a renovation to be completed this year. Highgate will assume management of the hotel, and Paragon Gaming will continue to operate the casino.
THPT Comment – OK we got the Oyo model, of small budget-type hotels in small-town USA, UK, China, India etc…then they added rental homes a la Airbnb with @leisure in Amsterdam, then work spaces with Innov8…and now 650-room Las Vegas Casino-Hotel? At least they have partnered with Highgate, a professionally run hospitality management firm. Not a bad price per room, although Trinity bought the hotel in 2015 for US$70m.
Hong Kong Hotels in Crisis as Protests Deter Visitors
Hong Kong’s hotel industry is struggling with a collapse in bookings after thousands of protesters shut down flights from the territory’s airport this week in an escalation of months of clashes with police.
Revenue from room sales is set to plunge as much as 50 per cent this month, according to Mr Yiu Si Wing, a Hong Kong lawmaker representing the tourism industry who said visits from mainland China that usually account for 80 per cent of arrivals are down most as people fear for their safety.
Room rates in Hong Kong are falling as a result of mounting safety concerns, according to Mr Yiu.
A standard room this weekend at the upscale Conrad Hotel, owned by Hilton Worldwide, is priced at HK$1,530 (S$271) – more than 40 per cent cheaper than the same booking two months later, according to prices on its website. Conrad did not immediately respond to a request for comment.
Websites for hotels owned by Marriott International and Shangri-La Asia showed similar discounts.
THPT Comment – Sadly hotels/cities are very reactive to events, such as riots and terrorism occur, as Paris, London, Sri Lanka and many others have experienced… We all wish Hong Kong well to a speedy resolution, hopefully.
IHG Leads the Way to Rid Hotels of Bathroom Miniatures
InterContinental Hotels Group (IHG) has vowed to rid all 5,600 of its hotels of miniature bathroom toiletries in a bid to reduce its plastic waste.
The group will be replacing them with larger amenities or refillable ceramic options. It is understood to be the first global hotel company to commit to removing bathroom minis. Almost a third of IHG’s estate has already adopted the change.
IHG’s Six Senses Hotels Resorts Spas offers bathroom products in refillable ceramic dispensers across its entire estate, while the group’s Kimpton estate is already moving to larger-size amenities. voco, Even and avid brands have all offered bulk-size amenities since launch.
The group has also pledged to remove plastic straws from its hotels by the end of the year, and several properties have partnered with technology company Winnow to track, measure and reduce food waste.
IHG franchises, leases, manages or owns more than 5,600 hotels and nearly 843,000 guest rooms in more than 100 countries, with over 1,900 hotels in its development pipeline.
THPT Comment – Thank goodness…those, like me, that are long-sighted, will no longer have to wear glasses in the shower, or use the foot-balm instead of shower-gel! as well as leading the way for the hotel industry to do it’s ting to help cut the use of one-time plastic in everyday life.
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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