This is your one free issue for the month.

Subscribe today for full access.

North America

Marriott Cleared to Acquire City Express Portfolio

Alan Woinski and Kim Woinski
March 12th, 2023 at 2:01 PM EDT

Skift Take

  • If you are wondering about who in the sector has exposure to the collapse of Silicon Valley Bank, Sonder Holdings confessed to having $2 million in an operating cash account and approximately $20 million in deposit accounts with SIVB.
  • Marriott International, Inc. received approval from Mexico’s Federal Economic Competition Commission for the acquisition of the City Express brand portfolio from Hoteles City Express, S.A.B. de C.V.
  • According to a new report from HVS, hotel operators need to learn to manage the entire building they operate and start thinking of performance in terms of the total revenue or profit per available square meter.

The DJIA ended Friday down 345 points although individual stocks seemed to be down a lot more than the major ones in the indexes. Nasdaq fell 199, the S&P 500was down 57 points and investors surged into treasuries as a safe haven, dropping the yield on the 10-year by .23 to 3.70%. Lodging stocks were lower with the exception of MCG which was up 7%. SLNA fell -10% to another new low, SOND was down -7%, AHT was down -6% and BHR, VCSA and PK were each down -5%.

If you are wondering about who in the sector has exposure to the collapse of Silicon Valley BankSonder Holdings confessed to having $2 million in an operating cash account and approximately $20 million in deposit accounts with SIVB. SOND also held a $60 million line of credit facility with SIVB with $13 million currently utilized in the form of letters of credit.

Marriott International, Inc. received approval from Mexico’s Federal Economic Competition Commission for the acquisition of the City Express brand portfolio from Hoteles City Express, S.A.B. de C.V., paving the way for the company’s entry into the affordable midscale segment. Marriott said the transaction could close in the second quarter. Upon closing, Marriott will acquire the Hoteles City Express brands including City Express, City Express Plus, City Express Suites, City Express Junior and City Centro. The hotel portfolio is comprised of approximately 150 hotels totaling around 17,000 rooms in more than 70 cities in Mexico and three additional countries in Latin America. Following the closing, Marriott expects to update the City Express brands with its signature “by Marriott” endorsement.

According to a new report from HVS, hotel operators need to learn to manage the entire building they operate and start thinking of performance in terms of the total revenue or profit per available square meter, giving a more accurate assessment of the property’s success. The most widely used performance index is RevPAR, or revenue per available room, which does not take into account those hotels that have substantial non-rooms revenue-generating departments such as food and beverage and conference operations and also can’t be used to compare hotel performance against the performance of other types of real estate. In the report, HVS evaluates the value of other indices including GOPPARTRevPAR as well as RevPAM and GOPPAM, which both consider the hotel’s total revenue or profit per available square meter.

Two downtown St. Louis, Missouri hotels are in financial trouble, prompting lenders to seek other hoteliers to manage the properties. The dual-brand Home2 Suites/Tru by Hilton was placed under receivership last week while the lender behind Hotel Indigo filed for receivership this week. Saint Louis Bank, the lender of Hotel Indigo, has no plans to sell the 88-room hotel. The owner and developer, Olive Street Saint Louis LLC, failed to make payments and owes more than $10.4 million. Saint Louis Bank is asking the court to approve Midas Hospitality to serve as receiver. The 201-room Home2 Suites/Tru by Hilton is owned by Blueprint Hospitality and had failed to make payments on a $23 million loan. Last week a St. Louis Circuit Court Judge approved a request by lender HDDA, affiliated with Access Point Financial, to appoint Equis Hotels to act as receiver to manage the property. 

The Hilton Minneapolis, in Minnesota, sold for $225 million to its creditors in a foreclosure auction. A Wells Fargo Bank attorney was the sole bidder in the auction. Wells Fargo was acting as the trustee for JPMorgan Chase, which provided a $180 million loan to the Hilton’s owners in 2018. Haberhill LLC and Walton Street Capital, the owners of the 826-room hotel, still have a six-month redemption period from when the sale enters into the court system to match the bid and pay interest as well as other costs in order to retain ownership.

Hyatt Hotels Corporation and Jesta Group announced the first Hyatt Centric hotel in Canada, Hyatt Centric Ville-Marie Montreal. The property features 177 guestrooms including five suites, a signature restaurant, a rooftop pool, and four fully equipped meeting and events facilities sprawling nearly 5,000 square feet. 

IHG Hotels & Resorts announced the opening of the Hotel Indigo Guadalajara Expo in the capital of Mexico’s Jalisco state. The property features 162 rooms, an enclosed courtyard, onsite fitness center and a rooftop bar. The Hotel Indigo Guadalajara Expo is owned by Immobiliaria JAVIPA S.A. de C.V. and managed by Grupo Hotelero Mexicano

Ground LVL, a wholly owned subsidiary by HEI Hotels and Resorts, is a newly launched project company that takes clients from project inception to completion. The project management company will offer a comprehensive one-stop-shop, with design and construction expertise, an extensive selection of services and a unique owner/operator perspective that sets it apart from its competitors. 

Interior Image GroupConcord Hospitality and Keystone Development announced the completion of Hotel West & Main, a new six-story hotel located in Conshohocken, Pennsylvania. The hotel features 127 guestrooms, two distinct culinary experiences and sky bar, fitness center, and more than 5,000 square feet of flexible indoor/outdoor event space.

Magnuson Hotels announced the addition of Wafer 450 to its Independent Collection portfolio. The 31-room hotel, located in Santa Clara, California, is the fourth property added to Magnuson Hotels by California’s Stay Cal Hospitality, and the nineteenth hotel the group represents in California.

The 420 Hotels announced the launch of a crowdfunding round for the first hotel with a legally licensed lounge for cannabis consumption The 420 Hotels Inc. is developing this first location by adding a cannabis consumption lounge as an amenity to the adjacent Patterson Inn, which they own.

Erin Claussen, owner of Toledo Revival, is giving new life to an old building in Toledo, Ohio. Renovations are underway at the Hotel Royal. The plans include five hotel rooms, three large apartments and commercial space. Renovations are expected to be completed later this summer. 

The Sea Trail Convention Center, in Sunset Beach, North Carolina, has a new owner with big plans for the property. Sea Trail Investments LLC, a sister company of Riptide Builders, recently closed on the purchase of the Sea Trail Convention center, the Village Activity Center, and a 15-acre tract of adjacent property. Plans for the property include a 150-room resort-style hotel, a driving range, and a brand-new practice and entertainment facility. Chinaway, Corporate Development LLC, which previously owned the convention center, amenity center and undeveloped land, maintains ownership of the golf courses.

Shield Hotels seeks to build a three-story, 35-room boutique hotel in Hatfield, Massachusetts. The proposed hotel, is also expected to house 20 self-storage units located in two buildings on either side of the property. The proposed boutique hotel will function as an overnight stay rather than an extended.

Opal Collection recently added four more properties to its prestigious portfolio of Florida hotels and resorts. Located on some of Florida’s most treasured properties are The Atlantic Suites on the Ave in Delray BeachThe Capri Inn in NaplesThe Lucie on Hutchinson Island; and Reefhouse Resort & Marina in Key Largo

MidCap Hotel Loans closed a $16.2 million construction loan for an Even Hotel by IHG. The new 110-room hotel will be located near the Orlando International Airport. MidCap secured construction financing with a 36-month term and one 12-month extension option.

Brent Pelton announced the opening of the first all-new hotel built on St. Thomas in more than two decades, The Pink Palm Hotel. The Pink Palm is a 27-room hanging garden of terraces, hideaways and hangouts. The property offers a signature, green tile pool, a terrace restaurant and a future spa.

Personnel Move

The Indigo Road Hospitality group appointed Zach Girgenti as director of Outdoor Experiences. Girgenti is responsible for creating meaningful outdoor experiences for the guests at Indigo Road’s boutique hotels while ensuring everyone feels safe, cared for, and inspired by being surrounded by nature’s beauty. Before taking on this role, Girgenti held the internal position of taskforce manager.

Europe Highlights

Research from Knight Frank has found transaction volumes for UK hotels is set to grow in 2023. The property consultancy noted UK hotel transactions in 2022 totaled £3 billion, 31% below the five-year average and 22% below 2021’s investment levels. The newly published research predicts growth in transaction volumes especially during the second half of 2023, driven by more stable market conditions and a large amount of capital seeking to target the hotel sector. Knight Frank added that increased visitor numbers to the UK, forecast to total 31 million in 2023, will particularly benefit hotels in markets with strong overseas demand such as London and Edinburgh

The iconic Carlton CannesA Regent Hotel, part of IHG Hotels & Resorts’ luxury & lifestyle portfolio will reopen on March 13. The restored and re-imagined Carlton Cannes, A Regent Hotel has 332 rooms and 37 branded residences. The two-year renovation skillfully preserved the hotel’s historic features and added two wings, the home to luxury residences. These wings create an enclosed garden with alcoves, sunbathing decks, cabanas and the largest hotel infinity pool in Cannes. 

Deutsche Hospitality introduced its partnership with Fritz Hansen, a leading Danish design company. The next-generation IntercityHotel band is being redesigned to accelerate its international growth by embracing a diverse, mobile and tech-savvy group of travelers. The CitySquare, a new social lobby will create a multifunction, seamless space. The IntercityHotel Amsterdam is currently showcasing many of the new initiatives. Upcoming openings for the band in 202 include city locations in Germany, Switzerland and Asia. The economy brand, Zleep Hotels, entered a partnership Danish furniture design company, Fritz Hansen, whose timeless pieces of furniture and signature chairs will soon be accessible for guests in all existing 15 Zleep Hotels in Denmark, Sweden and Spain as well as new Zleep Hotels scheduled to open in Germany, Switzerland and the Czech Republic over the next 12 months. Deutsche Hospitality also relaunched its H Rewards loyalty program. H Rewards now accelerates the earning of points by rewarding online check-in and contact less arrival as well as direct bookings via the App or new website, Furthermore, members have the option to waive certain benefits, turning them into reward points.

Alan Woinski and Kim Woinski
March 12th, 2023 at 2:01 PM EDT

Companies: Ashford Hospitality Trust, City Express, Deutsche Hospitality, EVEN Hotels, HEI Hotels & Resorts, Hilton, Hilton Hotels & Resorts, Home2 Suites by Hilton, Hotel Indigo, Hyatt Centric, Hyatt Hotels Corporation, IHG Hotels & Resorts, Magnuson Hotels, Marriott International, Midas Hospitality, Opal Collection, Regent, Selina, Shield Hotels, Sonder Holdings Inc., The 420 Hotels, The Indigo Road Hospitality, Tru by Hilton, Vacasa

Locations: California, England, Florida, Florida Keys, France, Guadalajara, Massachusetts, Mexico, Minneapolis, Montreal, North Carolina, Ohio, Orlando, Philadelphia, St. Louis, St. Thomas

Up Next


Kimpton Unveils Plans for Hawaii 

Kimpton Hotels & Restaurants is partnering with Coco Palms Resort to open a luxury resort in Kauai, Hawaii in 2026, featuring 350 accommodations, a coconut grove, spa, pools, and dining options.


Ritz-Carlton Expands to Mexico’s Caribbean Coast

The Ritz-Carlton brand will make its debut on Mexico’s Caribbean coast with The Ritz-Carlton Residences, Riviera Maya, featuring 127 residences, with sales and construction starting this year and the first phase debuting in 2026.


Dolly Parton Confirms Plans for Nashville Hotel

Dolly Parton has announced plans for a downtown Nashville hotel called Songteller Hotel, along with a museum showcasing her fashion and career artifacts.

You've Read Your Free Issue for the Month

Subscribe today to get access to 20+ new issues a month and our entire archive.

Already a subscriber? Login

North America
Per Month
Charged $495 per year.
APAC + NA Combo
Per Month
Charged $795 per year.