Private Equity Firm Brookfield to Pay $3.8 Billion for Watermark Lodging Trust

Here are some excerpts from what Daily Lodging Report informed its readers over the past week. If you’re not a subscriber, you should be. Register now, here.

Sunday May 8

Watermark Hosting Trust announced that they have signed an agreement with private real estate funds managed by Brookfield Asset Management which will see Brookfield acquire Watermark in a $3.8 billion all-cash transaction. Brookfield will pay $6.768 per Class A share and $6.699 per Class T share. The transaction includes debt assumption and preferred stock. Watermark’s portfolio consists of 25 properties with more than 8,100 rooms located in drive-through leisure destinations and urban cities in 14 states. Brookfield expects to complete the transaction in the fourth quarter of this year.

According to Lodging Econometrics Q1 2022 Construction Pipeline Trend Reportthe Latin America Hotel Construction Pipeline That is 563 projects, or 92,356 rooms. Mexico leads the construction pipeline in Latin America with 216 projects. Next come Brazil with 90 projects or 15,115 rooms, Peru with 32 projects or 972 rooms, the Dominican Republic with 22 projects or 4,853 rooms and Colombia with 18 projects/2,782 rooms. Latin American cities with the largest pipelines, including Mexico City, Guadalajara, and Cancun. In 2023, LE analysts predict the opening of 108 projects/16,587 rooms in Latin America.

Orient-Express signed a partnership agreement with Arsenal SpA to open the second Orient Express hotel in Italy at Palazzo Dona Giovannilli in Venice. The Orient Express Venice hotel will consist of 45 rooms and suites, a restaurant, and bar.

Skift Note: The Brookfield deal shows that interest in investing in hotel portfolios remains strong. Notably, in this case, the Sun Belt region has a high concentration of active ingredients. A portfolio with similar assets is Xenia Hotels, Baird analysts said.

Monday May 9

If you are interested in owning part or all of a hotel that should never have been built, Bermuda Supreme Court appointed a liquidation and control commission to South Shore Investmentsformer godfather 13 Hotel located in Macau. As people liquidate the company, the hotel remains in limbo when it comes to ownership and its future.

Seven years after selling the Denver Tech Center’s Best Western Plus for $15 million, DTC Hotel LLC still owes $11.5 million. According to DTC Hotel, Rockies Lodging Capital signed an $11.5 million promissory note and took out a $200,000 loan for repairs to the hotel in April 2015. DTC says the company owes it $11. $3 million on the promissory note and the entire $200,000 loan, plus interest, late fees and attorney’s fees. DTC Hotel has begun foreclosure on the 149-room Best Western and asked an Arapahoe County judge to appoint a receiver to oversee the hotel’s day-to-day operations and ensure its bills are paid. District Court Judge Frederick Martinez agreed and appointed Colorado Hospitality Services.

Skift note: Expect to see litigation over hotel assets that began during the pandemic to clog courtrooms as they finally head to hearings.

tuesday 10 may

The Hotel As is finally launching in Australia, with sydney the first brand location. Ace Hotel Sydney will open on May 18, the first Ace in the southern hemisphere. The hotel will take over the Tyne Building on Wentworth Avenue in Surry Hills, owned by the Golden Age Group. Ace Sydney will feature 264 bedrooms, a gym, restaurant and cafe, lobby bar and rooftop bar and restaurant

the Nustar Resort & Casino opened the Cebu Island in the Philippines. It is called the first integrated resort for the holiday destination. The complex will include three hotel towers. Tower 1 is ultra-high-end, Tower 2 will be five-star, and Tower 3 will be for the MICE market. It will also include a shopping and retail center that will offer luxury retail and dining options, a first for Cebu. The casino floor totals 21,000 square meters and will eventually include 1,500 gaming machines and 500 tables. The opening was originally scheduled for March.

German Hospitality said since entering Middle East market in 2015, the brand now has a total of 23 operational properties across the region. They are looking to establish four additional hotels by the end of the year. Their global strategy includes their entire portfolio of brands including Steigenberger Hotels & Resorts, Steigenberger Icons, MAXX by Steigenberger, House of Beats, Jaz in the City, Intercity Hotel, Zleep Hotels and now Steigenberger Porsche Design Hotels. The group is preparing to launch its first luxury lifestyle hotel concept with Steigenberger Porsche Design Hotels, offering a minimum of 150 rooms, suites and penthouses, as well as the first Intercity hotel in Muscat, Oman. In March this year, the group announced its partnership with Al Hamra to take over the management of Al Hamra Village Hotel and Al Hamra Residence in Ras Al Khaimah. They were able to reopen the Al Hamra residence on April 15, in a record time of 25 days from the signature of the hotel management. The Al Hamra Village hotel is expected to reopen in the third quarter of 2022.

Skift Note: These items are good news for The Ace Hotel, Nustar brands, and Steigenberger who seem to have a bright globalized future.

Wednesday May 11

the South China Morning Postt published an article on recent announcements of the sale of two Hong Kong hotels. SCMP said Shun Ho Construction purchased the Bay Bridge Lifestyle Retreat and Weave Living acquired the former Grand City Hotel from Magnificent Hotel. totaled $295 million and shows that cash-rich investors are betting on a rebound in the hospitality sector once borders reopen. Shun Ho is the wholly owned subsidiary of Magnificent Hotel Investments. The Bay Bridge Lifestyle Retreat is a 435-room hotel located on the waterfront in the western New Territories, overlooking the Tsing Ma Bridge, while the Grand City Hotel is in Sai Ying Pun. Weave Living is partnering with investment firm Angelo Gordon for this purchase.

Australian said Accor plans for three other Movenpick hotels In the region. According to the article, the popularity of chocolate-themed hotels inspired Accor to accelerate the brand’s growth across the Pacific. Accor will open two new Movenpick hotels in New Zealand while another is planned in Brisbane’s inner suburb of Spring Hill. Since opening in Tasmania last year, Accor has expanded the brand to four locations in Australia and New Zealand. First construction has begun on its fifth location, the Movenpick Hotel Brisbane Spring Hill, which will open in 2024. Overall, more than 110 Movenpick locations are open worldwide.

Skift Note: Some investors are thinking beyond the current covid restrictions towards a better future.

Thursday May 12

PEG companies acquired a portfolio of nine properties of hotels and plans to operate each of the properties as hotels and convert them into quality Class B multi-family communities when the highest and best use of the property will no longer be a hotel. The nine hotels are located in Boston, MA; Vancouver, Washington; Dallas, TX; Atlanta, Georgia; Jacksonville, Florida; Philadelphia, Pennsylvania; Ann Arbor, Michigan; and Princeton and Ocean City, both in New Jersey. With the majority originally built as efficient Residence Inns by Marriott Extended Stay Hotels, the properties lend themselves to cost-effective conversions. To date, through the PEG Extended Stay Conversion Fund, LP, PEG has acquired 15 extended stay hotels and is currently completing fundraising of $130 million.

Skift Note: Many investors are now thinking more on a continuum from residential to hotel.