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1. KSL Set To Buy Hersha REIT for $1.4 Billion
Hersha Hospitality Trust has reached a deal to be acquired by KSL Capital Partners for $1.4 billion in cash. The $10-a-share deal represents a 60% premium over the hotel-focused real estate investment trust's share price from Aug. 25. The deal is expected to close in the fourth quarter of 2023 subject to customary closing conditions and shareholder approval.
In the news release, Hersha Executive Chairman Jay Shah said the deal "will allow us to deliver value for our shareholders while refocusing on growing the business over a longer period of time."
There were no indications on how the deal would affect Hersha's affiliated management company HHM Hotels.
2. Oxford Capital Reopening, Rebranding Four San Francisco Hotels
The San Francisco Chronicle reports Oxford Capital Group is making a significant investment in four San Francisco properties, with plans to renovate, rebrand and reopen.
The four properties are:
- the 152-room Americania Hotel, which will reopen as a Soma House.
- the 121-room Good Hotel, soon to be the Hotel Garrett.
- the 48-room Carriage Inn Best Western, which will become the Hotel Fiona.
- the 110-room Hotel Vertigo, which will be the Hotel Julian.
All of the properties will reopen in September, other than the Julian, which opens in October.
“We’re going to take back Seventh Street,” said George Jordan, president of Oxford Hotels & Resorts, Oxford Capital’s hotel operator subsidiary. “We know exactly what we’re up against. We know what we’re getting into. We’re not wearing rose-colored glasses.”
3. Cricket World Cup in India Huge for Hotel Demand
Booking activity around the upcoming Cricket World Cup in India shows "unprecedented" demand for hotels, HNN contributor Chitra Balasubramaniam reports.
The last World Cup, held in England and Wales in 2019, drew more than 750,000 attendees with more than 500,000 hotel room nights booked. Hoteliers in India are already seeing solid results related to the nearly two-month event.
“The fervor of fans has driven this exceptional demand, underscoring the importance for travelers to secure their accommodations in advance during this time,” said Nikhil Sharma, market managing director for Eurasia at Wyndham Hotels & Resorts.
4. Technical Issues Cause UK Flight Delays
What was described as a "technical issue" and a "network-wide failure" caused a rash of flight delays and cancellations across the United Kingdom on a holiday weekend for the country, NBC News reports.
Airports affected by the issues include London's Heathrow, Stansted and Gatwick along with the Manchester Airport.
5. Union Calls for Conventions Boycott at Some LA Hotels
Unite Here Local 11 has called for groups and organizations to move plans for conventions and events out of hotels where its members are striking. The union also issued a short list of organizations that have already pledged to move their business out of affected hotels.
The union, which has been striking for better wages and working conditions throughout the summer, said the LAUSD school board has agreed to not do business with strike-affected hotels. Other organizations the union said have canceled, suspended or relocated events include the Democratic Governors Association, the Japanese American Citizens League and The Council of State Governments West.