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5 Things To Know for Nov. 30

Today’s Headlines: Mohegan Gaming Finalizes Funding on South Korea Hotel Casino; New BWH Boss Targets Labor and Revenue; Omicron Variant Likely To Have Lesser Impact on Global Economy; Staycations Lift Travelodge UK To Record Third Quarter Revenue; Raffles’ Old War Office London Hotel Gets Opening Date

Mohegan Gaming & Entertainment — which has a hotel-casino portfolio that includes the Mohegan Sun in Uncasville, Connecticut — has finalized the $1.55 billion, phase-one financing on an integrated resort in South Korea. (Ed Messenger/CoStar).
Mohegan Gaming & Entertainment — which has a hotel-casino portfolio that includes the Mohegan Sun in Uncasville, Connecticut — has finalized the $1.55 billion, phase-one financing on an integrated resort in South Korea. (Ed Messenger/CoStar).

Editor's Note: Some linked articles may be behind subscription paywalls.

1. Mohegan Gaming Finalizes Funding on South Korean Hotel Casino

Casino-hotel firm Mohegan Gaming & Entertainment has closed its financing round to develop the Inspire Entertainment Resort on Yeongjong Island, Incheon, South Korea. The aggregate funding of $1.55 billion will be used for the first phase of development of the integrated resort due to open in 2023. The company's flagship property is the hotel-casino Mohegan Sun in Uncasville, Connecticut.

The funding includes $575 million in equity — $300 million from Mohegan and $275 million from firms Bain Capital and MBK Partners — and approximately $890 million from three Korean banks. The first phase of development will include 1,200 rooms in three hotel towers, a 15,000-seat arena, a domed, climate-controlled indoor and water park, and conference and convention facilities.

2. New BWH Boss Targets Labor and Revenue

Larry Cuculic is the new CEO at BWH Hotel Group following the retirement of David Kong. During an interview with Hotel News Now's Stephanie Ricca at the New York University International Hospitality Industry Investment Conference, Cuculic said his company will review wages, benefits and flexible working hours and provide hotel owners tools to make hiring easier.

A second major task for Cuculic is to drive revenue to owners across all of the company's brands, which during Kong’s tenure grew from one eponymous brand to three tiers of that brand as well as four boutique brands and two collection brands.

3. Omicron Variant Likely To Have Lesser Impact on Global Economy

Economists say the newly discovered Omicron variant of COVID-19 is not likely to hurt the global economy as much as the pandemic’s initial burst, but discretionary spending at hotels, restaurants and bars will soften and potentially fall further if the severity of the variant is worse than initially believed, according to the Wall Street Journal.

The newspaper reports increased vaccination rates and political pressure to avoid a new lockdown will likely result in governments adopting a strategy of mandatory mask-wearing and the imposition of new regulations following “new information about what measures are the most effective at containing the virus.” The United Kingdom government has imposed mandatory mask-wearing in England starting Nov. 30 in shops and on public transport, according to the BBC.

4. Staycations Lift Travelodge UK To Record Third Quarter Revenue

Private U.K. economy hotel firm Travelodge, which operates 593 hotels, earned record revenues in the third quarter of 2021, which the company credits to a rise in staycations resulting from the COVID-19 pandemic and the extra hurdles and anxieties connected with international travel and changing regulations and health requirements.

Revenue for the quarter was 229.5 million pounds sterling ($306 million), which was a 160.2% increase over the same period in 2020 but also a 9.9% increase over 2019, when its revenue was 208.8 million pounds sterling. Comparable revenue per available room for the quarter was 53.54 pounds sterling, an 11.8% increase over the same period in 2019.

5. Raffles’ Old War Office London Hotel Gets Opening Date

The long-awaited opening for Raffles Hotels & Resorts' London hotel in the Old War Office has been announced for late 2022. Accor brand Raffles and property owners the Hinduja Group said the Raffles London at the OWO in the Grade II-listed Old War Office will have 120 hotel rooms, 85 branded residences and 11 restaurants and bars.

In the Whitehall district of London, a three-minute walk from Downing Street, the hotel once housed the office of Winston Churchill and has featured in no fewer than six James Bond movies. The building also was occupied by 007 creator Ian Fleming, who acted as liaison between the OWO and Naval Intelligence. The luxury hotel will join recent luxury hotel openings and reopenings in London, including The Londoner, Pan Pacific London and the Jumeirah Carlton Tower.

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