Hilton plans to grow its presence in Greater China from nearly 20,000 rooms to 270,000, while Accor has found partners to help build more than 1,300 hotels. It is wise for the giants to look beyond China’s current pandemic crisis and plan for future growth.
Here’s a sample of what the Daily Lodging Report provided its readers with last week. If you’re not a subscriber, you should be. Do not wait. Register now, here.
sunday april 17
A article in the Bharat Express said hotel companies Hilton, United States Hotelsand Shangri La are accelerating Asia-Pacific expansion plans. Hilton plans to more than double its presence in Asia In the coming years, opening a record 100 hotels in the region in 2021, expanding its presence from nearly 20,000 rooms to more than 120,000 rooms in 523 hotels, including 400 in Greater China. It aims to open 760 new hotels in the coming years to bring the total number of rooms in the region to more than 270,000. Pan Pacific Hotels Group will add more than 4,000 rooms in 18 new and renovated properties over the next few years, adding to its existing portfolio of nearly 12,500 rooms across 39 owned and managed properties in Asia, Oceania, Europe and North America. Shangri-La has opened four new hotels in the past six months, including three across China with a total of 1,188 rooms as well as its first hotel in Saudi Arabia. The group said it has a significant portfolio of upcoming hotel and mixed-use development projects in Australia, China, Cambodia and Japan in the coming years. CBRE said in March that hotel investment in Asia-Pacific jumped 46% to $12.1 billion in 2021.
Skift Note: It’s wise for hotels to be in post-pandemic recovery despite the current headwinds in China.
monday april 18
Ashford Inc. announcement Hotels in Remingtona wholly-owned Ashford holding company, acquired Chesapeake Hospitality. Ashford acquires Chesapeake for initial consideration of $15.75 million, payable with $6.3 million in cash and $9.45 million of a new Series CHP convertible preferred unit, which will pay an annual dividend of $7 .28% and will have a conversion price per share of $117.50. Chesapeake will also have the opportunity to earn up to $10.26 million in additional consideration based on its contribution to base management period fees for the 12 months ending March 2024 and March 2025 for total potential consideration. of $26 million.
If Chesapeake’s performance results in a full earnout for the seller, Ashford expects a full-year 2024 EBITDA contribution of $5.3 million, representing a multiple acquisition of 4.9x EBITDA. With the completion of the acquisition, Remington now operates 121 hotels in 28 states across 25 brands, including 19 independent and boutique properties. chris greenthe former president and CEO of Chesapeake, has been named division president of Remington Hotels.
Reference pyramid announced that it would acquire Provenance Hotels. The deal, which is expected to close in the second quarter of 2022, will add Provenance’s 12 hotels to Benchmark Pyramid’s portfolio of more than 240 properties in the United States, Europe and the Caribbean. Upon completion of the deal, Provenance Founder and Chairman Gordon Sondland will join Benchmark Pyramid’s Board of Directors. The companies did not disclose terms of the agreement.
Remark : The acquisition of Ashford expands Remington’s presence in Midwestern markets including Pittsburgh, Milwaukee, Detroit and St. Louis. The Benchmark acquisition comes just as the company was expanding its hotel acquisitions in the Pacific Northwest.
tuesday april 19
Ashford Inc.., a real estate investment firm specializing in hospitality, announced that Jeremy Welter, its president and chief operating officer, will leave the company effective July 15. Welter’s position as chief operating officer of Ashford Hospitality Trust and Beaemar Hotels & Resorts will also end on July 15.
Remark : Welter said on a recent investor call for Ashford“We have more opportunities than we have access to capital right now. Now, there are some things we’re working on that might help with that.
Wednesday April 20
Accorin collaboration with Ennismoreannounced a long-term master franchise agreement with country garden central enterprise of the alliance, Funyard Hotels and Resorts, one of the leading real estate and hotel developers in China. Accor and Ennismore partner with Funyard to bring lifestyle brand Jo&Joe to China with commitment from open at least 1,300 Jo&Joe hotels, representing more than 100,000 rooms. Funyard will be the exclusive strategic partner of the JO&JOE brand in China. Jo&Joe is part of Ennismore, a global collection of lifestyle brands. Accor and Ennismore entered into a joint venture in 2021 to create a new standalone entity with Accor holding majority ownership. Jo&Joe was created to defy convention, with each destination welcoming travelers and locals with the comforts of a hotel and the friendly atmosphere of a community gathering place.
Remark : Accor Greater China recently surpassed 500 hotels, so the latest move is to more than double its presence in the country. Jo&Joe’s initial locations in China will be announced later..
Thursday April 21
Marcel New Haven Hotel, Tapestry Collection by Hiltonconsidered the first net zero hotel in the United States, accepting reservations for May 19, 2022 and beyond. The groundbreaking hotel will use on-site renewable solar energy sources to generate electricity for its common areas, restaurant, laundry, meeting rooms and 165 guest rooms and suites. Developed and owned by Becker + Becker and operated by Remington Hotels, the Marcel New Haven Hotel offers 7,000 square feet of meeting and event space with a penthouse courtyard, restaurant and lounge, and 12 Tesla superchargers or charging universal level two for electric vehicles.
Remark : Investing in net zero properties is a smart move for hoteliers.