Hotel News Now each week features a news roundup from a different region of the world. This week’s compilation covers Europe.
Accor Signs Mozart Prague
Accor has signed a deal with owner Courbet to manage the 17th-century Mozart Prague, which sits beside the Charles Bridge on the banks of the Vltava River in the capital of the Czech Republic. It will be initially run with Accor assuming the role of a white-label hotel firm, but after it has been renovated, it will be named the Sofitel Legend The Mozart Prague.
UK Budget Restricts Short-Term Rental Tax Breaks
The United Kingdom government’s 2024 budget has, among other policies, restricts tax breaks that incentivize owners of second homes to rent those homes on short-term rental platforms such as Airbnb, Hotel News Now reports.
Kersten Muller, managing director for real estate at business advisory Alvarez & Marsal, said “at present, furnished holiday lettings benefit from a more generous tax regime, allowing them full relief for interest expenses. For investment properties, this relief is restricted. … There is a concern that the capital gains tax changes increase costs and, even if the holiday homes are coming to the long-term rental market.”
Travelodge Finalizes Acquisition of 66 Hotels for £210 Million
United Kingdom economy hotel firm Travelodge has completed the acquisition of 66 hotels in a combination of freehold and long-leasehold agreements from London-based real estate investment trust LXi REIT, which remains Travelodge's largest landlord. The deal’s closing price tag is £210 million ($270 million).
Technically, the new owner is Travelodge PropCo Group, which is a separately held division to Travelodge’s operating division, Travelodge OpCo Group. Both are held by Travelodge’s newly formed parent, T&L Holdco Limited.
MCR Hotels Spends £275 Million on Iconic BT Tower
U.S. hotel owner-operator MCR Hotels has acquired for £275 million ($353 million) one of the most recognizable and tallest buildings in London, the BT Tower, which looms over Oxford Street in the West End.
Bought from BT Group, the building will be transformed into a hotel, but work will not begin for a couple of years. There has been no word as to whether the 34th-floor revolving restaurant, which closed in 1971, will reopen.
Sun Venture Makes Hotel Debut with London Acquisition
Singapore asset-management firm Sun Venture acquired the Hyatt Place London City East, its debut deal in the hotel industry.
Opened in June 2021, the hotel has 280 rooms and is under the management of Cycas Hospitality, which is to remain in place. The price was undisclosed.
Castello SGR Acquires Sardinia’s Poltu Quatu Resort in €70 Million Deal
Publicly listed asset-management firm ANIMA Group via its hotel-operating division Castello SGR acquired the Poltu Quatu resort and mixed-use property for €70 million ($76 million) from family office Pulcini Group.
On the Italian island of Sardinia, the property includes a 139-room hotel. The new owner plans to increase its hotel ownership, “to significantly grow its portfolio, which today amounts to around €1 billion and consists of 32 facilities and over 4,000 rooms.”
Accor Exec Says Record Earnings a 'Major Milestone'
On an earnings call with analysts, Accor Chief Financial Officer Martine Gerow said the surpassing of a record €1 billion in earnings before interest, taxes, depreciation and amortization constituted a “major milestone” for the French hotel firm.
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