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5 Things To Know for Jan. 23

Today's Headlines: Blackstone To Sell Arizona Biltmore; Wyndham Responds to Choice's Board Nominations; Hoteliers Wait for Next Shoe To Drop; Aimbridge Hospitality Reflects on 2023 Growth; China's Economy Stifles Return of International Travel

Bloomberg reports Blackstone has agreed to sell the 703-room Biltmore Arizona in Phoenix to Henderson Park for $705 million. (Hilton)
Bloomberg reports Blackstone has agreed to sell the 703-room Biltmore Arizona in Phoenix to Henderson Park for $705 million. (Hilton)

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1. Blackstone To Sell Arizona Biltmore

Bloomberg reports that Blackstone has agreed to sell the Arizona Biltmore in Phoenix to Henderson Park, a London-based private equity real estate manager, for $705 million. Blackstone and Henderson Park declined to comment.

Blackstone acquired the 703-room property in 2018 from GIC Real Estate for $403.4 million, according to CoStar data. Blackstone spent more than $150 million renovating the property after it took over ownership, Bloomberg reports.

2. Wyndham Responds to Choice’s Board Nominations

After Choice Hotels International nominated eight people to stand for election at Wyndham Hotels & Resorts’ 2024 shareholder meeting Monday morning, Wyndham’s Board of Directors released a statement pushing back on Choice’s continued hostile takeover attempts, HNN's Trevor Simpson reports.

“This action is yet another attempt by Choice to advance its inadequate and risk-laden hostile exchange offer, which the Wyndham Board unanimously determined is not in the best interests of shareholders,” the Wyndham board said. “Choice’s proxy contest is a blatant scheme to mislead shareholders into packing the Wyndham Board with nominees handpicked to push through their offer.”

3. Hoteliers Wait for Next Shoe To Drop

Hoteliers at the first day of the Americas Lodging Investment Summit in Los Angeles were mostly positive, reflecting on the normalization of the hotel industry over the past year and patiently awaiting the Federal Reserve to lower interest rates, HNN’s Bryan Wroten, Sean McCracken and Stephanie Ricca report.

“The ALIS conference sets the tone for U.S. hotel industry outlook for the year, and the word I would use for the overall mood after Day One is 'good.' There’s no unbridled optimism here, but what we see is a group of industry executives who have seen some stuff and been through some stuff and are setting reasonable expectations for the short term,” Ricca wrote in her takeaway.

4. Aimbridge Hospitality Reflects on 2023 Growth

Aimbridge Hospitality grew its portfolio and reach in 2023, setting the company up for further success in the new year, HNN’s Bryan Wroten reports.

The Plano, Texas-based third-party hotel management company oversaw several hotel renovations in 2023, including the $425 million renovation of the Westin Beach Resort & Spa at Frenchman’s Reef.

“As the industry leader, we know the important and impactful role Aimbridge has in shaping the third-party management space — a space that has clearly emerged as the future of hospitality,” said Mark Tamis, global president at Aimbridge. “Our desire to build the best culture for our associates, strengthen our relationships with our brand partners, and deliver superior performance for our owners remains a constant guiding force.”

5. China's Economy Stifles Return of International Travel

Travel in and out of China has been lagging ever since the country reopened its borders from COVID-19 isolation in 2023. The lack of a strong economy has been the main factor holding back the return of international travel, the New York Times reports.

“Growth has bounced back from the pandemic, but the weight of a severe real estate downturn has dampened consumer spending and confidence inside China. And global geopolitical tensions remain a wild card,” the newspaper reports. “China is engaged in trade disputes with the United States and Europe, home to many major multinational companies. As they think twice about their business in China, travel suffers.”

International flights in China are expected to reach 80% of pre-pandemic levels by the end of the year. A full recovery of international travel isn’t expected until 2025, the Times reports.

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