Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index ended November with a 2.7% decrease to 1,951 and is down 17.5% year-to-date 2011. The index ended 2010 at 2,364.
“Investors were reminded of the volatile market conditions this month,” Randy Smith, co-founder and chairman at STR, the parent company of HotelNewsNow.com. “The hotel industry is still reporting steady performance but will start to face tougher year-over-year comparisons in 2012. Add to that STR’s recent downgrade of the 2012 forecast and the ever-changing macroeconomic landscape, and investors are making sure to keep a close watch before making any moves.”
Accor
Accor sold a 52.6% stake in Hotel Formula 1 to Southern Sun Hotels for €28 million (US$37.3 million).
Hotel Formula 1 was formed in 1991, as a joint venture between Accor and Southern Sun. The company now owns 20 hotels totaling 1,474 rooms, in addition to managing three hotels already owned by Southern Sun across South Africa. All 23 hotels now will operate as franchised units, under the Formula 1 brand.
The disposal price of €28 million comprises €25 million (US$33.3 million) attributable to Accor’s stake in Hotel Formula 1 and a €3-million (US$4 million) refund of a loan made by Accor to the company. The transaction is subject to the approval of local Competition Authorities.
Accor’s stock price closed Thursday at €19.29 per share (US$25.79) and is down 41.82% year to date.
Starwood Hotels & Resorts Worldwide
Starwood Hotels & Resorts Worldwide has acquired a nearly 50% stake in Berlin-based Design Hotels AG, a company that represents and markets a selection of 200 independent hotels in more than 40 countries.
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Starwood bought the 49.8% stake in Design Hotels from Arabella Hospitality SE. The deal is expected to close during the first quarter of 2012.
"This is an investment presented to us by a longtime partner," Frits van Paasschen, Starwood’s president and CEO, said in a news release. "With our own passion for design and innovation, we have long admired Design Hotels, its founder, CEO Claus Sendlinger, and his executive team, who have worked closely with some of the world's most exciting independent hotel owners to curate a unique collection of hotels around the globe. As a shareholder, we are delighted to have a seat at the table of this dynamic company."
Starwood’s stock price is down 22.34% year to date, closing Thursday at US$47.20 per share.
Strategic Hotels & Resorts
Strategic Hotels & Resorts has extended its offer to purchase up to more than 4.7 million preferred shares to 12 December 2011. The deadline to acquire the shares had been 7 December. The shares are priced at between US$26.50 and US$26.70 per share.
As of 7 December, the real-estate investment trust had tendered 2.87 million preferred shares.
In a news release, officials at Strategic indicated the company has no plans to further extend the offer.
The REIT’s stock price finished Thursday at US$4.86 per share and is down 8.13% year to date.
Compiled by Shawn A. Turner.