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1. TPG Angelo Gordon and Kenedix acquire Tokyo Grand Nikko for $692 million
New York City-based investment firm TPG Angelo Gordon and peer group, Tokyo-based Kenedix, formed a joint venture and acquired the 882-room Grand Nikko Tokyo Daiba for 106 billion Japanese yen ($695 million), or $787,982 per key, according to business website Mignini, which said the deal is the largest hotel deal in Japan this year.
The parties, including seller Hulic Co., also based in Tokyo, said they expected the deal to close by the end of November. Hulic released a statement on Oct. 28 stating a sale agreement was in place, adding “the sale price is equivalent to more than 10% of Hulic’s consolidated net sales (446 billion yen) in the most recent consolidated fiscal year.”
2. Some Hyatt owners resisting renovations
In its third-quarter 2024 earnings conference call with analysts, executives at Chicago-based Hyatt Hotels Corp. said that there's been attrition in their portfolio from hotel owners unwilling to meet brand standards, writes Hotel News Now’s Sean McCracken. Despite this, executives said Hyatt reached a record pipeline number of 135,000 rooms in 690 hotels in development.
Hyatt President and CEO Mark Hoplamazian told analysts that “a relatively higher number of hotels [are] coming to the end of life [with property-improvement plan] requirements that were not met. So maybe we had a blip here heading into the fourth quarter. I will say that if you look at the structure of our brand portfolio, we do not, at this point, have a brand into which we would encourage owners who want to downgrade their hotels to something that's a lower level just to maintain those rooms. That’s different than our competitors.”
3. Boeing union urges strikers to return to work
The International Association of Machinists & Aerospace Workers will ask its members at Boeing on Nov. 4 to vote on a new proposal to possibly end a strike that started on Sept. 13 and has been vastly damaging to the Seattle-based firm, according to the New York Times.
More than 33,000 members have been taking part in the industrial action and have already rejected two proposals. The New York Times quoted union executives as saying they thought it was time to pick up tools again. They told the newspaper that “if workers do not take the deal, they risk a regressive or lesser offer in the future.”
4. Romero takes up luxury development role at Minor
Thai hotel firm Minor International, which owns such brands as NH Hotel Group, Anantara and Tivoli Hotels all under its division Minor Hotels, created a new position of chief development and luxury officer. Omar Romero has assumed the role, according to the firm.
Based in Bangkok, Romero will report to Dillip Rajakarier, CEO of Minor Hotels and Group CEO of Minor International. He previously was chief development officer at IHG Hotels & Resorts’ Six Senses brand.
5. Related and partners to bring St. Regis to Fort Lauderdale
Miami-based developer Related Group, along with Rok Acquisitions and Tate Capital, shared more details about their $2 billion mixed-use development planned in Fort Lauderdale.
According to Globe Street, the partners say they have signed a St. Regis-branded hotel with approximately 200 rooms to replace the existing DoubleTree by Hilton Hotel.
CNBC reports the city owns the 40-acre site at Fort Lauderdale’s Bahia Mar marina. The partners added that the project will also include condominium towers, 88,000 square feet of waterfront shopping and restaurants, a park, beach club, a promenade and additional marina berths, among other offerings. No timeline has been announced for completion of the work.
Related Group executives have said their goal is to create a "mini Monaco" in the area, according to CNBC.