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1. SC Capital Acquires Japan Hotel Portfolio
A consortium of Singapore-based SC Capital Partners that is a subsidiary of the Abu Dhabi Investment Authority and Goldman Sachs Asset Management has purchased 27 hotels in Japan for roughly $900 million, Reuters reports.
An official statement said the consortium bought the hotels from Japan-based home construction and real estate development company Daiwa House Industry. The hotels total 7,124 rooms.
In November 2022, SC Capital and ADIA launched a $2 billion data center investment strategy targeting data center investments across the Asia-Pacific region.
“Japan’s real estate sector continues to deliver superior returns, and the country’s hotel market is well positioned for growth from the rebound of travel,” Mohamed Al Qubaisi, executive director of the real estate department at ADIA, said in a statement.
2. Oaktree, Trinity Investments Refinance Hawaii Hotel
Funds managed by Oaktree Capital Management and Trinity Investments have arranged a $515 million refinancing of an existing $360 million loan for the 771-room The Westin Maui Resort & Spa Kaanapali Beach, reports Hotel News Now's Sean McCracken. Oaktree and Trinity completed a nearly $120 million renovation and repositioning plan for the resort prior to refinancing.
“The resort’s strong performance following the completion of its renovation has generated interest among lenders, and we are pleased with the outcome of this refinancing in a challenging capital markets environment. We continue to believe in the strong performance of the Hawaiian hospitality market and our partner Trinity as our local operator,” said Taejo Kim, managing director of Oaktree’s Real Estate Group.
3. Brand CEOs Agree Franchising Is Key for Growth
CEOs of hotel brand companies at the Aimbridge Summit Live! conference this week reinforced that franchise partners and third-party operators are integral to global growth, reports Hotel News Now's Bryan Wroten.
Marriott International President and CEO Tony Capuano said about 60% of the portfolio is franchised, compared to five years ago when it was 55%. This points to a trend that franchised business is becoming more meaningful.
“All the brands and companies with the right partners have fully embraced the franchise model,” he said. “As long as we're picking the right partners, it's a critical part of our growth strategy going forward.”
4. Europe's Heat Waves Disrupt Travel
As intense heat waves and robust travel demand across Europe coincide, officials have been focused on keeping tourists safe, the New York Times reports. Task force volunteers over the weekend were handing out free bottles of water outside of Rome's Colosseum and outdoor markets while Britain's Foreign Office cautioned British tourists to be vigilant of local weather updates.
Researches say heat waves could become longer, more intense and more frequent. Summer typically produces a wave of tourists in Europe, but some travel advisers note there are signs that travelers are adjusting their plans.
"July and August are typically peak travel months, but the season has started stretching into April, May, September and October," the news outlet reports. "Some travelers are also opting to visit European countries further north, while others are planning their itineraries around the cooler hours of the day."
5. Davidson Launches In-House Creative Agency
Hospitality management company Davidson Hospitality Group launched its own in-house creative agency called DH Creative, which will specializes in comprehensive brand development services and creative direction for its portfolio of hotels, resorts, restaurants, bars, spas and membership clubs, reports Hotel News Now's Trevor Simpson.
Services include brand development, project management, photography and videography and website development.
“Through our years of experience and overseeing the development of more than 100 brands, we identified an opportunity to provide a service to owners seeking professional, yet economically priced, brand development support,” Davidson Hospitality Group Chief Operating Officer Pete Sams said in a news release. “We are proud to offer all of the same services that an outside agency does, including brand research, brand development and the development of operational touchpoints to help our hotels personify the brand. Ultimately, we’ve crystalized these services with the objective of delivering upon our promise of creating value for our ownership partners.”