Hard Rock International Nears Completion of Mirage Hotel Acquisition

The DJIA rose 92 points, Nasdaq was up a point, the S&P 500 was up 4 points and the 10-year treasury yield jumped another .10 to 3.68%. Lodging stocks were modestly higher. VCSA traded down to a new low while MCG was down -6%.

Aloft Hotels announced it has arrived in Playa del Carmen, Mexico, marking the third Aloft hotel in the Caribbean region. Aloft Playa del Carmen features 167 rooms, WXYZ bar and Re:mix lounge, dedicated workspaces, Camp Aloft kids’ program and Live at Aloft.

Two new hotels are being planned by Performance Capital Partners LLC in Surprise, Arizona. A new dual-brand Marriott TownePlace Suites and Marriott Fairfield Inn & Suites hotel will be part of the new Village at Prasada retail, entertainment and dining center that is being developed by SimonCRE. The hotel will comprise four stories and 109 rooms.

Concord Hospitality assumed management of the 179-room Courtyard by Marriott San Antonio SeaWorld/Westover Hills and the adjacent 98-room Fairfield Inn & Suites by Marriott San Antonio SeaWorld/Westover Hills, both located in San Antonio, Texas. The Courtyard by Marriott features The Bistro, Waves Lounge, fitness center, indoor/outdoor pool, and nearly 8,200 square feet of meeting space.

MCR acquired the Hyatt Place Miami Airport East in Miami, FL, marking the company’s ninth hotel in Florida and its first Hyatt hotel. The six-story hotel features 135 rooms, a full-service restaurant and bar, a grab-and-go market, outdoor pool, fitness center, guest laundry facilities and a business center. The hotel was purchased from Mia LeJeune LLC for $16.58 million. 

Susurros del Corazon, Auberge Resorts Collection has opened in Mexico’s Punta de Mita. The resort features 59 rooms and suites and 30 villas and homes, three infinity-edge pools, multiple food and beverage venues, Onda, an Auberge Spa, and a kid’s club.

The Highlander Hotel Radford, in Radford, Virginia, is now accepting reservations for stays beginning April 1, 2023. Located Adjacent to Radford University, the $40 million development project was made possible by a public-private partnership between Radford University, the Radford University Foundation, Preston Hollow Capital and Aimbridge Hospitality. The six-story boutique hotel and conference center boasts 124 guestrooms including four apartment-style suites, two restaurants, a rooftop terrace, coffee bar, in-lobby regional visitors center, on-site parking, fitness center and 6,000 square feet of meeting and event space.

Hard Rock International closed on the purchase of the operations of the Mirage Hotel & Casino in Las Vegas from MGM Resorts International for $1.075 billion in cash. VICI Properties announced they entered into a triple net lease agreement with Hard Rock in respect to the real property associated with the Mirage. Initial total annual rent under the lease with Hard Rock is $90 million with a 2% annual escalator. The initial term is 25 years. VICI said they may fund Hard Rock’s planned redevelopment of the Mirage through VICI’s Partner Property Growth Fund.

Kempinski Hotel marked its one hundred and twenty-fifth anniversary this year with the opening of Kempinski Hotel Cancun. The property offers 315 guest rooms and 48 suites, multiple dining options, two pools, an oceanfront whirlpool, spa, fitness center, tennis center, beauty salon and kids club. There is abundant indoor and outdoor event space including an 11,220 square foot divisible ballroom, elegant meeting rooms, boardrooms, breakout spaces, and outdoor venues by the pool, or a beachfront venue for up to 700 guests. 

IHG Hotels & Resorts announced the opening of its newest Holiday Inn hotel in San Jose, Costa Rica. The Holiday Inn San Jose La Sabana features 118 guest rooms, three meeting rooms, a fitness center, outdoor pool and a restaurant. The property is owned and managed by Hotelera Santa Marta S.A. 

Davidson Hospitality Group has been selected to manage Barnsley Resort in Adairsville, GA, under its Davidson Resorts operating vertical. The 3,000-acre resort features 140 rooms, including standalone cottages and suites; 16,000 square feet of indoor meeting space; three restaurants and bars including a Beer-Garden; The Spa at Barnsley Resort; a fitness center, three retail shops; seasonal outdoor pool; a hunting reserve; a championship golf club; and a 10-acre lake. This marks the third property that Davidson operates in the state of Georgia.

Innisfree Hotels has acquired the Comfort Suites Fernandina Beach at Amelia Island, Florida. The 50-room, all-suites hotel is the sixth Innisfree property on Amelia Island. The hotel is located immediately adjacent to the beach and the entrance to Fort Clinch State Park.

Clearview Capital Group completed the sale of the Tempest hotel in Tempe, Arizona. Terms of the sale were not disclosed. The Tempest, which is adjacent to the Arizona State University Campus, was sold to a local hotel group doing business as Jay Sagar LLC. 

Springboard Hospitality announced two new hotels joining its portfolio, The Sandcastle Oceanfront Resort at the Pavilion and The Sandcastle Oceanfront Resort South Beach in Myrtle Beach, South Carolina, with a combined 410 rooms, marking Springboard Hospitality’s expansion into the Palmetto State. The Sandcastle Oceanfront Resort at the Pavilion features two pools and a lazy river. The Sandcastle Oceanfront Resort South Beach offers indoor and outdoor pools, an oceanfront lawn area, and poolside cabana bar. Springboard Investment Advisors LLC advised on structuring the hotel’s management contract and co-investment alongside Hybridge Capital Management.

Marcus & Millichap announced the sale of a two-property, 180-room hospitality portfolio in Denton, Texas. The assets are an 88-room La Quinta Inn & Suites and a Holiday Inn Express & Suites with 92 rooms. Marcus & Millichap represented the seller, Angel Hospitality group, and procured the buyer, an out-of-state, high net-worth individual. Both hotels have on-site fitness centers, laundry facilities, business centers, and heated pools with whirlpools.

Chatham Lodging Trust has increased commitments under its senior unsecured revolving credit facility by $45 million with the addition of Royal Bank of Canada as a top tier lender. With this incremental commitment, Chatham’s unsecured revolving credit facility increases to $260 million. Combined with its new $90 million term loan, Chatham received commitments of $350 million that replace Chatham’s previous $250 million senior unsecured credit facility that was scheduled to mature in 2023. Inclusive of extension options, the revolving credit facility and term loan mature in October 2027.

Personnel Moves

Peachtree Group appointed Michael Bernath as senior vice president of acquisitions. In this role, Michael will oversee the company’s national hospitality acquisition program. Most recently, Michael served as a principal with Avison Young’s national hospitality group and its predecessor, Hotel Assets Group. 

The American Hotel & Lodging Association announced three promotions among its leadership team. Kiersten Pearce was promoted to Senior Vice President, Executive & Strategic Initiatives. In her new role, Pearce will shape and develop key industry initiatives and ensure alignment and execution on AHLA’s strategic plan and organizational priorities. Pearce previously served as AHLA’s Vice President of Member Engagement & Services. Adrienne Weil was promoted to Senior Vice President Member Engagement & Services. In her new role, Weil will lead AHLA’s membership team and spearhead efforts to optimize AHLA’s committees and networks and ensure AHLA’s differentiated value proposition remains relevant as member needs evolve. Previously, Adrienne served as AHLA’s Vice President of Strategic Partnerships and Business Development. Kara Filer was promoted to Senior Vice President, Strategic Partnerships and Business Development. In her new role, Filer will optimize and expand sponsorship and event revenues from AHLA Allied member companies, aligning sales and relationship strategies between AHLA and the American Hotel & Lodging Foundation where she will remain a key member of the leadership team. She previously served as AHLAF’s Vice President of Donor Relations and Development.