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North America

Sonder Announces Reverse Split, Hopes to Stay on Nasdaq

Alan Woinski and Kim Woinski
September 20th, 2023 at 5:28 PM EDT

Skift Take

  • Sonder Holdings announces a 1 for 20 reverse split to maintain its Nasdaq listing, with Selina also considering a reverse split.
  • STR reports US hotel data with a slight increase in US hotel RevPAR but a decrease in Group RevPAR for the week ending 9/16.
  • Various hotel acquisitions and developments are underway, including Omni Hotels & Resorts in Raleigh, Travel + Leisure Co.’s sports-themed resorts, Life House in Palm Springs, and more.

If the Fed just issued their statements, we would be so much better off. No rate hike, but then the Fed chief held his press conference and if you bet on the market dropping, you won again. The DJIA fell 77 points but Nasdaq was down 209 while the S&P 500 was down 42 points. The 10-year treasury yield was down .02 to 4.35%. Lodging stocks were lower. VCSA was up 6% but AINC traded down -13% to a new low on very low volume. SOND was down -6%.

Sonder Holdings has become the latest SPAC to announce a reverse splitto try to maintain a $1 minimum bid price and stay on Nasdaq. SOND announced a 1 for 20 reverse split, taking effect at the opening of trading tomorrow. It looks like Selina is on the reverse split on deck circle.

STR reported US hotel data for the week ended 9/16. US hotel RevPAR was up 0.1% for the week. Group RevPAR was down -0.3%.

OTH Hotels Resorts announced the addition of Le Meridien, a north Dallas, Texas boutique hotel, to their portfolio. Le Meridien Dallas includes 258 suites, dining options, 6,500 square feet of meeting space, a fitness center and an indoor pool.

A joint venture between Continental Hospitality Group and Musselman Hotels has acquired the 150-room Courtyard by Marriott Louisville Airport located adjacent to the Kentucky Exposition Center in Louisville, Kentucky. New ownership plans to make a significant investment to upgrade technology and guestroom offerings, which along with the exterior and lobby renovations recently completed, will help to enhance the property’s competitive positioning. 

Rankin Holdings is planning a mixed-use Home2 Suites Hilton hotel for Northampton, Massachusetts. The proposed 109-room hotel and 31-unit residential building, formerly the site of the Daily Hampshire Gazette office building, would be completed in two phases, the first being the building of the hotel and the second, the condominiums. The project is currently awaiting planning board approval. 

Omni Hotels & Resorts was picked as the preferred developer for city-owned land, in downtown Raleigh, that could become a 550-room hotel with rooftop pool, spa, five food and beverage outlets, two ballrooms and 55,000 square feet of meeting space. Located near the Raleigh Convention Center, the hotel could open in 2027 and become the third Omni hotel site in North Carolina.

avid hotels, part of IHG Hotels & Resorts, announced the opening of its first New York property in Brooklyn. The 76-room avid hotel Brooklyn – Dyker Heights is owned by SUNSHINE BROOKLYN LLC.

Travel + Leisure Co. and Sports Hospitality Ventures LLC, introduced a new concept for a network of future sports-themed resort and lifestyle complexes located in popular college towns near universities with devoted fan bases. Every Sports Illustrated Resorts campus is expected to feature a full-service hotel, a vacation club, and residential condominiums. All resort campuses will also include a host of branded, one-of-a-kind attractions from live action sports and entertainment to quality dining, wellness and relaxation. In addition to the planned university locations, the broader portfolio of properties is expected to include chic beach clubs and experience parks located in leading leisure destinations. The first major Sports Illustrated Resorts college town destination will be in Tuscaloosa, the home of the University of Alabama. The property will capture the essence of sports and active lifestyle, complete with a full-service hotel, vacation ownership club, signature SI Fit Health/Wellness Center, world-class dining, entertainment and more. It is expected that the Tuscaloosa resort will open in late 2025. Travel + Leisure Co. is leveraging its expertise in managing multiple brand partnerships for the development, distribution, and management for the new Sports Illustrated vacation club product. 

Life House is opening its sixth hotel in November 2023, this time in Palm Springs, California. Life House Palm Springs is home to 66 guestrooms, an all-day restaurant and bar featuring an indoor-outdoor setting, and a pool area adorned with cabana-style loungers, sun umbrellas and fire pits. 

Two and a half years after the former Hotel Henry in Buffalo, NY shut down because of the pandemic, the historic site has re-opened under new ownership as the Richardson Hotel. The hotel is a national historic landmark with more than 40 acres of green space and a park, a restaurant and a historic bar and wine vault.

Sanara Hotels & Sanctuaries announced an agreement for Colibri Boutique Hotels to purchase the Sanara Tulum Hotel on Tulum Beach, Mexico. The 19-room property features a restaurant, spa, and wellness center. The sale was for an undisclosed sum. A number of addition locations for Sanara Hotels & Sanctuaries Hotels are currently being considered across Europe including Mallorca in the Balearics and outside London, England. In addition plans are underway on an already purchased 750-acre historic hacienda property in Valladolid, Yucatan, Mexico. Colibri Boutique Hotels will announced plans for the Tulum property this fall.

Corazon Cabo Resort & Spa, A Noble House Resort, introduced seven contemporary event spaces comprising a total of more than 45,000 square feet. The addition features over 10,000 square feet of interior space, which includes six meeting rooms and an additional 35,000 square feet of outdoor space. The new options provide endless possibilities, from beachfront celebrations to affairs on the rooftop of the tallest building in Cabo San Lucas, Mexico. Meeting and event attendees can also look forward to new menu innovations. In addition to the debut of these new meeting spots in Cabo, the resort is also completing an extensive reposition to elevate its Wet Bar, Wet Bar pool and Sundeck. Furthermore, Corazon Cabo is looking to fully transform their beach club and signature restaurant by summer of 2024. 

Jacobs Entertainment has acquired the Desert Rose Inn on West Fourth Street, which it plans to demolish as part of its Reno Neon Line District project. The developer called the acquisition a key piece of its ongoing efforts to revitalize the West Fourth Street, in Reno, Nevada, corridor into a mixed-use destination for visitors and locals. The deed shows a limited liability company managed by Jacobs Entertainment acquired the property from the James and Catherine McAllister Trust. 

Summit Hotel Properties, Inc. announced its joint venture with GIC completed the refinancing of its $200 million senior credit facility, which is comprised of a $125 million revolving credit facility and a $75 million term loan. The new credit agreement provides for a fully extended maturity date of September 2028 for both the Revolver and Term Loan. The interest rate pricing from the prior credit facility has been maintained at SOFR+215 basis points for the $125 Million Revolver and SOFR+210 basis points for the $75 Million Term Loan. Other terms of the agreement are similar to the joint venture’s previous credit facility agreement. As a result of this refinancing, the Company has not material debt maturities through 2024 and its average length to maturity is over three years, including extension options.

Personnel News

Newbond Holdings announced the appointment of Emma Gad as its Senior Director of Asset Management. In this position, Emma will be overseeing the execution of the firm’s growing portfolio of full-service hotels. Emma previously served as a Director of Asset Management at Excel Group.

Mondee Holdings, Inc. announced the appointment of Jeff Clarke to its Board of Directors. Clarke is currently serving as Interim CEO at Doxim and has close to 20 years of experience in global distribution in the travel industry, including as CEO and Chairman of Travelport and Chairman of Orbitz.

Europe Highlights

Blackstone has purchased the Cascade Wellness resort in Lagos, Portugal through a Luxembourg based subsidiary, Magma Pledgeco. Reports in the Portuguese press suggest Blackstone paid €50 million. The acquisition encompasses all shares of Cascadeinvest and Sunseasand, which were bought from Fliptrel Portugal. Located close to the Dona Ana beach, the resort has 164 rooms and apartments, three restaurants and two bars, as well as three pools, a spa, two tennis courts, a gym, meeting rooms, a multi-use room and a kid’s club.

The Chelsea Townhouse by Iconic Luxury Hotels is London’s latest boutique hotel located in the heart of Chelsea. Formerly the Draycott Hotel, the property has undergone an extensive transformation to become The Chelsea Townhouse, located on the exclusive Cadogan Estate and just a stone’s throw from its sister hotel, 11 Cadogan Gardens. The Chelsea Townhouse is home to 36 uniquely designed bedrooms, a dining salon, access to the private Cadogan Gardens, The Library, and a discrete meeting room. Townhouse will also have access to the facilities of 11 Cadogan Gardens, including a private gym.

Grupo Pestana acquired the 189-room Vila Sol hotel in Vilamoura, Portugal, for €43 million from Santander Asset Management. Pestana will manage the hotel, which will be renamed the Pestana Vila Sol, which has two 18-hole golf courses. 

Alan Woinski and Kim Woinski
September 20th, 2023 at 5:28 PM EDT

Companies: Aimbridge Hospitality, Blackstone, Continental Hospitality Group, Courtyard by Marriott, GIC, Hilton Hotels & Resorts, Home2 Suites by Hilton, Le Meridien, Life House, Marriott International, Musselman Hotels, Newbond Holdings, Noble House Hotels & Resorts Ltd., Omni Hotels & Resorts, OTH Hotels Resorts, Sonder Holdings Inc., Summit Hotels, Travel + Leisure Co., Vacasa

Locations: Alabama, Dallas, London, Los Cabos, Louisville, Massachusetts, New York, North Carolina, Palm Springs, Portugal, Reno, Tulum, United States

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