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1. Braemar Updates Strategy, Will Sell Hilton La Jolla Torrey Pines
Hotel real estate investment trust Braemar Hotels & Resorts revealed its new shareholder creation plan, which includes the sale of the 394-room Hilton La Jolla Torrey Pines for $165 million, HNN's Dana Miller reports. The company is also looking at two more potential sales to be completed in 2024 and 2025, respectively.
Using cash on hand, the REIT also fully repaid the outstanding $30 million loan for its 143-room Cameo Beverly Hills hotel in Los Angeles.
"Over the past several months, the company has diligently worked through its refinancing program and, subject to the pending sale of Hilton La Jolla Torrey Pines, Braemar has refinanced or paid off all of its 2024 debt maturities," according to a news release.
Braemar also announced a $50 million preferred share redemption program along with a $50 million common share buyback authorization.
2. Saudi Arabia's Neom Project Runs Into Obstacles
The Saudi Arabian project known as Neom, which would redevelop an area the size of Massachusetts and include an arid ski resort and a 105-mile-long pair of skyscrapers, is running into some problems, the Wall Street Journal reports. Engineering and construction issues are causing the price of the project to increase significantly, and developers have already scaled back the first phase of some parts of the project.
"A mountain of challenges lies ahead," the newspaper reports. "More than 100,000 additional construction workers must be housed in a barren corner of the kingdom’s vast desert, two hour’s drive from any sizable city. Neom’s needs for steel, exterior glass and other materials are so massive they may push up global prices and be difficult to source. Planners worry the unique central concept of the Line, a vertical city housed in twin skyscrapers the length of Delaware, could prove to be an unappealing place to live."
3. Marriott Plans for Growth in Europe, Africa
In a video interview, Jerome Briet, Marriott International's chief development officer for Europe, the Middle East and Africa, said his company will leverage its distribution system, loyalty program and experience innovation to grow in the region, reports HNN's Terence Baker.
There's a lot of interest in further development in Africa through its Protea Hotels by Marriott brand as well as through others in its portfolio.
“At the core of everything we do, we will continue to push the Protea brand. It is critical to our growth in this market, but we’re also continuing with various experiences. For example, we have just opened the JW [Marriott] Masai Mara [Lodge in Kenya]. That is a stunning property. We have another JW coming up in the Serengeti,” he said.
4. Legal Challenges to NYC Congestion Pricing Puts Transit Repairs in Question
New York City expects to raise $15 billion through its Manhattan congestion pricing plan scheduled to start next month, and that money is targeted for repairs, maintenance and upgrades of its mass transit system, the New York Times reports. Several lawsuits, however, may throw a wrench into these long-term plans.
As these legal challenges create uncertainty, the Metropolitan Transportation Authority has cut back its spending plans for $12 billion in projects this year to $2.9 billion.
5. San Francisco Airport Jet Bridge Collapses
A jet bridge for a flight landing at San Francisco Airport collapsed just as the Hawaiian Airlines plane arrived at the gate, the San Francisco Gate reports. No one was injured, and all passengers were able to safely deplane.
The metal struts on the bridge failed, causing the collapse, the newspaper reports. Both the bridge and aircraft require repair before they can be used again.