The latest news on deals, developments, data and more.
“Tourists go home.” Tourists in Barcelona over the weekend were doused with water by thousands of locals protesting mass tourism to the popular destination. Similar demonstrations have taken place recently in the Canary Islands and Mallorca by protesters concerned about the cost of living and quality of life. The demonstrations were organized by a group of more than 100 local associations led by the Neighborhood Council for Tourism Degrowth. According to official figures, around 26 million tourists will stay overnight in the Barcelona region in 2023, spending 12.75 billion euros ($13.8 billion).
B&B adds lease in Florida. European-based mid-scale hotelier B&B Hotels has signed its second lease in the US, for a hotel in Jacksonville, Florida. The hotel is scheduled to open in the first quarter of 2025 with 156 rooms after a full renovation. B&B’s first US hotel opened in Orlando four months ago. Real estate investor Battipart is backing B&B as it looks to expand its presence in the US. The company owns nearly 800 hotels in 17 countries, mostly in France. The US business is led by US CEO Valerio Duccini. Fabrice Collet has been president and CEO of B&B Hotels since 2016, and Goldman Sachs became a major shareholder in 2019.
Trump deals in Oman. A Trump-branded resort is expected to debut in Oman by December 2028. The Trump Organization and luxury real estate developer Dar Global are partnering with Omran Group (Oman’s national tourism development arm) on a $500 million hospitality project that will be part of the AIDA mixed-use complex, currently under construction. The complex, whose first phase is expected to be completed by 2027, will be located about 10 minutes from downtown Muscat. The 140-room Trump International Oman, under development, will have an 18-hole golf course. The Trump Organization and Dar Global are also collaborating on another development in Jeddah, Saudi Arabia. The Trump Organization’s hospitality portfolio has grown from 15 properties in 2015 to eight properties today.
$430 Million Refinancing of Fairmont Austin. Manchester Financial Group secured a $430 million, five-year, interest-only fixed rate SASB CMBS loan for the 1,048-room Fairmont Austin in Texas, with Goldman Sachs as lead arranger and sole bookrunner. The total mortgage financing package was used to replace a $300 million senior loan and $125 million of mezzanine debt. JLL Capital Markets refinanced the asset on behalf of the borrower.
An AAHOA icon has passed away. Former AAHOA President Manhar P. Lama (MP) passed away on Sunday, July 7th at the age of 74. Mr. Lama served as AAHOA President from 2005 to 2006. Mr. MP is the brother of AAHOA founder HP Lama and former AAHOA President Jayanthi P. Lama (JP), who passed away in February 2022. Mr. MP was born in Africa and raised in India. He graduated with honors in civil engineering from MS University of Baroda. He traveled to the United States to complete his graduate studies in engineering in 1973, earning his master’s degree. At AAHOACON22, Mr. MP was awarded AAHOA’s Cecil B. Day Community Service Award. At the time, he said, “AAHOA has helped me grow professionally and as a person. Being a member of AAHOA has given me the opportunity to broaden my skills and increase my ability to look ahead and take on more responsibilities.”
Grenada is fully operational. In the aftermath of Hurricane Beryl, the Grenada Tourism Authority (GTA) announced that the country’s hotels and attractions are fully operational. Grenada’s sister islands, Carriacou and Petite Martinique, were devastated. Hurricane Beryl’s intense rains and winds destroyed desalination plants, cell phone towers, and fiber optic cables, impassable roads, and destroyed homes, local businesses, and income-generating activities. Petra Roach, CEO of the Grenada Tourism Authority, said, “Together, we can turn adversity into strength and continue to build a brighter future for all. We are extremely grateful to everyone who has offered their concern and support. The Caribbean spirit is one of unity and resilience, and together we will get through this.”
Hilton Resort in Ras Al Khaimah. Hilton has signed an agreement with M Hospitality to open Hilton Marjan Island Beach Resort & Spa in Ras Al Khaimah, the UAE’s northernmost emirate. The property, with 315 rooms and 35 suites, will join Hilton’s portfolio of 80 hotels across 11 brands operating in the Middle East when it opens in Q4 2026. The resort will augment Hilton’s existing portfolio of 36 hotels in the UAE, including five in Ras Al Khaimah.
DoubleTree comes to Tasmania. DoubleTree by Hilton and Fragrance Group Ltd have signed an agreement for the 206-room DoubleTree by Hilton Hobart in Tasmania. Construction is progressing on the hotel and it is scheduled to open in late 2024. With approximately 80 more properties planned in Asia Pacific, DoubleTree by Hilton will contribute to Hilton’s goal of operating more than 1,000 hotels in the region by 2025.
NH Collection comes to Koh Samui. Minor Hotels has announced the NH Collection’s entry into Thailand with the rebranding of Peace Resort Samui as NH Collection Samui. From 1 January 2025, following property upgrades, the resort will open as the 122-room NH Collection Samui on Bo Phut Beach. Founded in 1977 by the Puphaiboon family, the property has been independently operated ever since.
Fairmont Expands Residences: Fairmont Hotels & Resorts has partnered with UAE developer SOL Properties to launch Fairmont Residences Solara Tower Dubai, a private residential development. The Downtown Dubai project is currently underway and is expected to be completed by Q3 2027. The property adds to the Fairmont-branded portfolio of 16 residences, with a further 22 projects in the pipeline.
Ascott partners with Chelsea. Singapore-based Ascott has added six hotels to its European portfolio, debuting The Unlimited Collection brand and expanding its Life brand in the region. These new deals increase Ascott’s portfolio in Europe by 14% to approximately 8,000 units across six brands. In addition, Ascott has signed a strategic multi-year partnership with Chelsea Football Club, becoming the official global hotel partner of the English Premier League club. From late 2024, Ascott will take over management of the 232-unit stadium hotel at Stamford Bridge in London, home of Chelsea. The hotels will be rebranded as Life Stamford Bridge London in late 2025, with a focus on experience-led social living.
AAHOA Concerned About Sentencing of Homeless Residents. AAHOA (Asian American Hotel Owners Association) expresses great concern over the recent U.S. Supreme Court decision in City of Grants Pass, Oregon v. Johnson et al., which criminalized rough sleeping. The Supreme Court upheld the Grants Pass case late last month, which involved a ban on camping for homeless residents. The Supreme Court held that a law criminalizing sleeping in public places does not violate the Eighth Amendment’s protection against cruel and unusual punishment, even though the city did not have adequate shelter and the homeless residents had nowhere else to go. AAHOA said the decision will have far-reaching implications for municipalities and businesses, including the hotel industry. AAHOA said the Supreme Court’s decision raised important questions about public places, homelessness, and local government liability. AAHOA is concerned that such criminalization could lead to initiatives like those seen in Los Angeles. In Los Angeles, city officials recently considered an ordinance that would require hotels to report vacancies by 2 p.m. each day and allow homeless residents to use government lodging vouchers to stay without comprehensive services. AAHOA added that the proposed ordinance would impose a significant burden on the hotel industry, create significant uncertainty for hotel employees and guests, and threaten the local tourism industry. The new provisions would revise Los Angeles’ previous mandatory homeless lodging voucher program to voluntary.
U.S. hotel employment data. U.S. hotels added 700 jobs in June, according to government data. The hotel industry total employment is about 1.92 million, according to the Bureau of Labor Statistics (BLS). This reflects a shortage of available employees, as the number of industry workers is down by more than 196,000 compared to February 2020, just before the pandemic hit, according to AHLA. The BLS also revised down the nation’s hotel employment total, which removed industry job gains reported in previous months.
Karisma is coming to Montenegro. Karisma Hotels & Resorts has announced plans to partner with Dubrov & Family Group to build the Porta Rai Hotel & Residence Complex in Ulcinj, Montenegro. Construction is expected to begin in November this year, with the project estimated to be worth 160 million euros ($173 million). The luxury hotel and residence complex will be built on Velika Beach.
Selling three properties in Japan. Yuyuan Co., Ltd., a subsidiary of China’s Fosun International Co., Ltd., has sold a subsidiary that owns three resorts in Tomamu to Japan’s YCH16 for JPY 40 billion. Hoshino Resorts Tomamu (HRT) includes three hotels: Tomamu The Tower with 535 rooms, RISONARE Tomamu with 192 rooms, and Club Med Tomamu Hokkaido with 341 rooms. The resort also has 29 ski runs, 21 dining options, an indoor water park, a farm area, and other recreational facilities. In 2023, HRT is expected to achieve 75% occupancy. Fosun had acquired HRT in 2015 for JPY 18.3 billion.
Circle is expanding into London, with Sir Hotels due to open an 81-room hotel on the Shoreditch edge of London later this year. Sir Devonshire Square will join Circle Collection hotels in Amsterdam, Barcelona, Ibiza, Berlin and soon to be opened in Prague.
Mahir makes Brisbane acquisition. Australia-based Mahir Group has acquired the 50-room Ibis Budget Windsor in Brisbane, Australia, for an undisclosed amount. The acquisition is Mahir Group’s third venture in Brisbane, which also includes the 47-room Pegasus Motor Inn and the 44-room Alloggio Hamilton Brisbane Airport. Sir Hotels will open an 81-room property on the edge of Shoreditch in London later this year. Sir Devonshire Square will join the Circle Collection’s properties in Amsterdam, Barcelona, Ibiza and Berlin, with Prague opening soon.
Bob W is coming to Vienna. W has signed a deal to build its first Austrian serviced apartment complex in Vienna, with 67 units. The operator has signed a long-term lease with Viennese developer Peter Pilz & Partner ProjektWiklungs GmbH for the 2,000 square meter building on the Austrian capital’s historic Heiligenstädter Strasse. The aparthotel will bring the total number of European cities operated by the company to 18. Construction has already begun, with the first guests due to welcome in 2025.
