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Hotel News In Brief
Aug 16, 05 | 7:46 am
REIT to scoop up Austin hotel Winston Hotels Inc. is making an investment in Austin. The real estate investment trust, based in Raleigh, N.C., is under contract to buy a six-property, 698-room hotel portfolio for $46 million, including one hotel in Austin and another in College Station. The deal marks Winston's entry into the Austin and College Station markets, although the company already has a Homewood Suites in Clear Lake, a Holiday Inn Select in Dallas, and a Courtyard by Marriott and a Springhill Suites by Marriott in Houston. The six properties Winston plans to buy consist of one Courtyard by Marriott hotel and five Towneplace Suites hotels. It's unclear which properties are in Austin and College Station. The sellers and sale prices of those properties weren't disclosed. In addition to the two Austin and College Station properties, the other hotels are in Clear Lake, Houston and Birmingham, Ala. Winston says all the hotels are less than six years old. "These properties are well-located, in excellent condition and compete very effectively in their respective markets," says Joe Green, Winston's president and chief financial officer. The hotels will continue to be managed by Marriott International Inc. Winston expects to close the purchase during its third quarter, which ends in September. Winston (NYSE: WXH) specializes in the development, acquisition and repositioning of upscale extended-stay and full-service hotels. The REIT owns all or part of 49 hotels in 15 states.
Another condo-hotel conversion on the way in Orlando SRV Associated has paid $12 million for the Doubletree Resort Orlando-Villas at Maingate in Kissimmee, which it plans to convert into a condominium-hotel property called Saratoga Resort Villas. The 150-unit property will undergo extensive renovations to its two- and three-bedroom town house units and the hotel's amenities, the Miami-based company says. The property includes an additional 5 acres for future development, as well as a restaurant and bar, retail space and a tennis court. Aztec Group Inc., a Miami-based investment and merchant banking firm, negotiated the transaction and arranged a $16 million acquisition and renovation loan. Avista Hotels, a subsidiary of Orlando-based Avista Holdings LLC, will manage the renovations and the property upon completion.
Cornerstone to convert Daytona Beach hotel An oceanfront hotel in Daytona Beach is to become a condo-hotel, thanks to $12 million in renovations by a Coral Gables real estate company. Cornerstone Group said its condo conversion division is working on the Inn on the Beach. The property, at 1615 S. Atlantic Ave., is to change its name to Bella Costa when it becomes a condo-hotel. The developer said it will preserve the seven-story structure, but will gut and renovate the interior. Renovations are to include new partitions, mechanical, electrical, plumbing, fire protection and interiors with enclosed, air-conditioned corridors. Work is to begin in October. When complete in April, Bella Costa is to feature 195 units in studio and one-bedroom floor plans. Square footage is to range from 432 square feet to 621 square feet, with prices ranging from $250,000 to $480,000. Units are to come furnished and outfitted with linens, drapes, lamps and artwork. High-end features include 42-inch LCD TVs and granite counters in kitchens and baths. Of units, 95 percent will have ocean views. Orlando Camps, president of Cornerstone's Condo Conversion Division, said Daytona Beach is one of the last areas along the coast with oceanfront property available. "There is and will always be a tremendous demand for these coveted views," he said. "But we're also selling the up-and-coming locale, as Daytona is undergoing major change."
St. Regis Hotel sells for $47M A joint venture between Brickman Associates and New Valley Corp. bought the St. Regis Hotel for $47 million, or $243,000 per room, from Starwood Hotels & Resorts Worldwide. Starwood will continue to manage the Italian Renaissance-style luxury hotel at 923 16th St. NW under the St. Regis Hotels & Resorts brand. The hotel has been open since 1926. Brickman Associates and New Valley intend to spend millions to renovate the hotel, according to Starwood. Starwood manages other key properties in Greater Washington, including the Regent Partners-owned Westin Arlington Gateway, a 319-room hotel part in Alexandria's Old Town Carlisle district, expected to open in February 2006. Miami-based New Valley has a 50 percent ownership interest in Douglas Elliman Realty, which operates one of the largest residential real estate brokerage company in New York City. Brickman Associates is based in New York City. Miles Spencer of Eastdil brokered the deal.
Luxury Units Presold in Queensland Gold Coast fund manager MFS is rolling out its new Mirage resort brand after signing the management rights to a US$47 million Queensland development, the Pavillions on 1770. The hotel is located on a beachfront site in the coastal enclave between the Queensland regional cities of Gladstone and Bundaberg. Currently under construction, the development will comprise 78 luxury units, of which roughly 70 have already been presold. MFS snared the management rights to the Pavillions complex for US$1.3 million and plans to brand it under its new Mirage chain, targeting the four- to five-star market. Anchoring the brand will be the existing Sheraton Mirage Resorts at Port Douglas as well as the Gold Coast, acquired by MFS and the Ray Group in a US$160 million deal in May. MFS targets to have a total of 10 resorts in the chain within the next 12 months
Hilton Plans US$43 Million Luxury Resort at Ningaloo Reef The West Australian government has approved a US$43 million Hilton resort at Coral Bay, near Ningaloo Reef , about 1,000 kilometres north of Perth. The resort is to be built after a controversial marina project, Mauds Landing Marina, was rejected in 2003. Two Oceans has formed a joint venture with the owner, Deligo, and Ryan Capital Advisors to develop the five-star luxury spa resort on the existing Ningaloo Reef Resort site in Coral Bay. Hilton Group will manage the 130-key resort, which is expected to open by early 2007. Though Hilton's focus has been on its US$305 million flagship hotel in Sydney, it is looking at more sites around Australia.
Leela Group Buys Kovalam Resort for US$13.8 Million Leela Hotels has acquired a 190-room resort at Kovalam, Kerala, currently owned by the UAE-based construction major Mfar group, for about US$13.8 million. The 75-year-old palace is considered a heritage building and the acquisition of the resort is the latest addition to the hospitality business of Leela Hotels. The group, besides its flagship property, The Leela in Mumbai, also includes the Leela Palace in Bangalore and the Leela Palace, Goa. This is the Leela group's first entry into the hospitality business in Kerala.
Swissôtel Standing Tall in Moscow Opened on 18 July 2005, the Swissôtel Krasnye Holmy Moscow will be the tallest hotel in the city at 34 storeys. The hotel will be positioned positioned at the top end of Moscow's domestic and international hotel scene and joins the growing portfolio of Swissôtel Hotels & Resorts, a brand managed by Raffles International Limited. The hotel will be Swissôtel Hotels & Resorts' first foothold in Russia and Eastern Europe. The 235-room property will offer both business and leisure travellers spectacular views of downtown Moscow as well as a total of 28 suites, amongst them, one of the largest Presidential Suites in the city (154m²).
Guoco Makes Play for Hotels, Gaming Investments Property and investment firm Guoco Group, controlled by Malaysian tycoon Quek Leng Chan, has been keen to reinvent itself as a hotel and gaming player since selling Dao Heng Bank for U$6 billion in 2001. It is believed that its US$595 million takeover bid for the Singapore-listed hotel investment firm, BIL International, indicates a keen focus on the tourism and leisure industry. Guoco and Mr Quek have a stake in Hong Kong's first casino play, K Wah Construction, and a BIL deal is expected to expand its presence in the region's tourism and leisure market.
IHG Takes Flight From Dublin Airport InterContinental Hotels Group (IHG) has disposed of another hotel, bringing the total number it has sold since April 2003 to 126. The latest to leave the company's system is the 248-room Holiday Inn, Dublin Airport, for which Adelphi Way Developments & Investments has paid the approximate net book value of £23.3 million. That sum takes the proceeds pile from the sale of the 126 hotels to some £1.8 billion.
Interval And De Vere Resort Ownership Sign Affiliation Agreement Interval International and De Vere Resort Ownership have a relationship “built on mutual respect” that has lasted for seven years. And yet the only sound of scratching has been that of pen nib on paper, as each party put its name to a long-term master affiliation agreement. The agreement covers all existing properties, and in De Vere's case there are three of these: Belton Woods, in Lincolnshire; Slaley Hall, in Northumberland; and Cameron House, on the shores of Loch Lomond in Scotland. And once it is finished The Carrick at Cameron House will also be covered by the agreement, as will all future properties.
Chicago-based Hyatt Hotels Corporation announced today that it will manage the 428-room Hyatt Regency Trinidad in Port of Spain, Trinidad . It will be Hyatt's first business and convention hotel in the Caribbean and its fifth property overall in the region, joining Hyatt Regency Aruba, Hyatt Dorado Beach (Puerto Rico), Hyatt Regency Grand Cayman, and Hyatt Regency Curacao (opening in late 2007). Construction on the hotel has already begun. Set to open in late 2007, Hyatt Regency Trinidad is part of the extensive mixed-use development project along the waterfront of Port of Spain, Trinidad's capital city. The Urban Development Corporation of Trinidad and Tobago Limited (UDeCOTT), Trinidad's leading public developer will own the hotel and all elements of the mixed development. Internationally acclaimed Bouygues Construction, selected together with Hyatt and UDeCOTT, and headquartered in Paris, France, is the design-builder firm on the project. "Hyatt is proud to be selected as the company to manage Trinidad's premier business hotel," said Steven Goldman, executive vice president of development for Hyatt. "We are excited to bring Hyatt's product to a new location with a lot of potential for business travel and group bookings." "We are extremely pleased with the selection of such an outstanding hotel operator as we continue the rejuvenation of Port of Spain," says Camille Robinson Regis, Minister of Planning and Development, Trinidad and Tobago. "Hyatt Regency Trinidad will be the signature property for the downtown area and an integral aspect of the waterfront development project. Hyatt's distinguished expertise in upscale business hotels made the company an easy selection." Flexible Meeting Space, Award Winning Food & Beverage, Spa Serenity The hotel will be a welcome addition to Trinidad for business travelers and convention goers. Located 30 minutes from Piarco International Airport, Hyatt Regency Trinidad will be one of the few local venues to offer expansive state-of-the-art meeting facilities. With 43,000 square feet of flexible meeting space, the hotel will accommodate both large and small gatherings. Included in the function space are a 16,000 square-foot Grand Ballroom and a 10,000 square-foot multipurpose facility. Two full-service restaurants, a lobby bar and lounge, and a rooftop bar and grill will offer guests a variety of food and beverage options. Hyatt's award-winning chefs will also cater to banquets and other large occasions to be held at Hyatt Regency Trinidad.Guests of the hotel will be able to find relaxation and invigoration, without leaving the premises, at the 9,000 square-foot spa and fitness center. The hotel's serene rooftop pool and terrace will similarly provide an escape for business travelers after long workdays. The hotel will also feature private entry to the waterfront esplanade and park adjacent to the hotel. In addition to catering to travelers' needs within the hotel, plans for the hotel property include a parking facility for 200 cars.
Who Financed The Prague Marriott Hotel Deal? We learned last week that Chicago-based real estate investment firm Walton Street Capital and investment bank Merrill Lynch had acted together to purchase the 293-room Prague Marriott Hotel and the BH Centrum office and retail complex from Austrian investment fund IDAG. Neighbours waiting to catch a glimpse of the new owners might have turned to their partners and asked, “where did they get the money for those, then, that’s what I’d like to know”. If you too were wondering, then here is the answer: Erste Bank of Austria, which provided the couple with non-recourse first and mezzanine funding of €127.5 million.
Maritim Hotels Opens A Second Hotel In Berlin Twenty-six months in the making and perhaps only a few minutes in the opening – welcome the Maritim Hotel Berlin . The four-star hotel, which is Maritim Hotels’ second property in the German capital after the Maritim proArte Hotel, has 505 guest rooms and is the largest congress hotel in the city centre – it can accommodate up to 5,800 delegates. Maritim Hotels is also planning to tempt the conference fraternity to the emirate of Dubai with a 2,000 m² conference facility at the Maritim Dubailand . This four-star hotel, which is due to open in July 2007, will have more than 1,000 guest rooms and will be financed by the German closed fund Dubai 1000 Hotel-Fonds.
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