Roosevelt Hotel Privatization Decision Delayed Again

The DJIA ended Friday with a gain of 228 points while Nasdaq was up 197, the S&P 500 rose 56 points and the 10-year treasury yield was up .04 to 3.9%. Lodging stocks were higher but the only big mover was to the downside, with SOND falling -9% ahead of the long weekend.

Bernstein cut their price target on Hyatt Hotels to $178 from $185. Bernstein maintained their Outperform rating on H.

VinaKom, a venture led by Ketu Amin, paid $34 million earlier this month for the 412-room Westin Chicago North Shore in the northwest suburb of Wheeling, Illinois, according to Vinayaka Hospitality CEO Komal Patel. Vinayaka oversees management and operations of Amin's portfolio of 11 hotels in Chicago and Minneapolis. The seller of the hotel was AVR Realty. According to Crain's Chicago Business, the Amin venture that bought the hotel financed the deal with a $24.5 million loan from Reinsurance Group of America. The Westin Chicago North Shore includes 35,000 square feet of meeting and event space, including a 14,825 square foot ballroom. Jones Lang LaSalle brokered the sale of the Westin Chicago North Shore.

Key International and Wexford Real Estate Investors initiated the renovation of the Fort Lauderdale Marriott Pompano Beach Resort & Spa in Pompano Beach, Florida. The comprehensive project will be completed in phases. The first phase focuses on a complete redesign of the beachfront resort pool, amenities and the North Tower guestrooms and suites. This phase is expected to be completed by the first quarter of 2025. The project's second phase focuses on the South Tower guestrooms and suites, which are scheduled for completion by the second quarter of 2025. The ground floor public space renovation is set to commence in the first quarter of 2025 and is anticipated to be completed by the second quarter of 2025. All 219 guestrooms and suites of the resort will undergo significant enhancements.

Morris Bailey, Chairman of JEMB Realty and Resorts Casino in Atlantic City, commenced the design and development process to create a phased mixed-use community on 80 acres adjacent to Monmouth Park Racetrack in Oceanport, New Jersey. The first phase of the project, to be developed in partnership with the State of New Jersey and Dennis Drazin's Darby Development LLC, is slated to break ground in Q4 2025. Plans for the site adjacent to the racetrack include the phased development of a 298-unit residential building, a 200-key hotel, and a youth sports community center. Additionally, the team is exploring a variety of entertainment options including music venues and experiential retail components.

The GreenRidge Phoenix announced the upcoming launch of an equity app, the "GreenRidge Phoenix app," aimed at supporting the development of a much-needed gas station and hotel in the historic Black town of Langston, Oklahoma, one of the 13 remaining original Black towns and settlements in the state. The proposed project, affectionately dubbed the "7-11 Hotel" by its founder, Bernard Allen-Bey, will be in the heart of the Town of Langston near the University Campus. The development includes a 7-11 gas station and a Holiday Inn hotel featuring 100 rooms, a restaurant and meeting space. GreenRidge Phoenix seeks to raise $10 million to complete this project. The funds will be used to cover the costs of land acquisition, construction, and initial operations of the gas station and hotel.

Pakistan's Privatisation Commission board again could not take a decision of the privatization mode of Roosevelt Hotel, New York, as its members remained divided over the options of giving the prime property on a 99-year lease or developing it under a joint venture. There was also no consensus on whether to privatize the hotel through a competitive bidding process or through a government-to-government deal. Roosevelt Hotel, which is the property of Pakistan International Airlines, is located in the heart of New York and part of the 1% most sought-after land of the city. Federal Minister for Privatisation Abdul Aleem Khan presided over the meeting of PC board. The financial advisor discussed three options in its report: outright sale, a joint venture deal or giving the hotel on a 99-year lease. The adviser recommended that Pakistan should develop the prime property under a joint venture to maximize gains instead of an outright sale. Pakistan had hired Jones Lang LaSalle Americas as the financial adviser at a cost of Rs2.2 billion. According to its report on the transaction structure, Pakistan will not have to pay any additional money for the joint venture and its contribution will be in the shape of the value of hotel land. Based on pre-marketing, due diligence and analysis of the options, the joint venture structure nets the highest value to the government of Pakistan, the advisor recommended in its report. The lease option has a medium risk with fairly high net proceeds to the government of Pakistan, higher than outright sale but lower that the joint venture option. The adviser recommended the selection of a strong development partner, having a strong balance sheet, strong market reputation and experience in managing complex zoning permissions. There was hardly any view in the favor of outright sale. The adviser also did not recommend the outright sale.

The new JOIA ARUBA by Iberostar is slated to open in December. The resort, which will be set on Eagle Beach in Aruba, will be an adults-only EP resort. That means it will not be an all-inclusive resort, but a European Plan, meaning food and beverages are all charged independently of your room rate. JOIA ARUBA will open with 240 guestrooms, three pools, a spa, two specialty eateries, four different lounges, a casino, rooftop deck, gym and a coffee shop. There is also access to the island's Tierra de Sol 18-hole golf course.

Latitude 21 Travel announced it is offering a new resort to its all-inclusive resort packages on the island of Aruba. Secrets Baby Beach Aruba by Hyatt Inclusive Collection is slated to open its doors in early 2025. The resort will offer five signature restaurants, the Secrets Spa by Pevonia, vibrant entertainment and a range of water sports, fitness classes, and excursions.

Europe Highlights

O'Callaghan Family Group announced the acquisition of The Keadeen Hotel in Newbridge, Ireland, which will now be part of The iNUA Collection. Financial terms of the deal have not been disclosed. Cliste Hospitality will manage the 69-bedroom hotel which offers multiple dining options, an 18m indoor heated pool, sauna, steam room, hot tub, fitness/yoga studio, and gym. It further offers event venues including a ballroom, various meeting rooms, and The Amphitheatre, among other facilities.

LaSalle Investment Management has bought The Motel One Tower Hill in central London from abrdn for £56 million on behalf of a UK Custom Account client. The 291-bedroom property is let to Motel One on a long-term inflation-linked lease. LaSalle was advised on the transaction by Kimmre. abrdn was advised by JLL.