NewcrestImage Plans to Acquire 100+ Hotels This Year

The DJIA was added 0.1% while Nasdaq slid less than 0.1%, the S&P 500 added 0.1% compared with Friday and the 10-year treasury yield ended at 3.414%, up slightly from Friday. Lodging stocks were mostly higher, including even ABNB getting a modest boost. SOND remained near its low.

NewcrestImage has plans to acquire more than 100 hotels this year, reported CoStar. So far in 2023, the company has finalized its purchase of a 45-hotel portfolio in 11 states. A joint venture of NewcrestImage and Hospitality Capital Partners closed on an acquisition of 11 Marriott-branded hotels. The same joint venture closed on an acquisition of 16 Marriott-branded hotels. According to NewcrestImage’s CEO, the company is keen on “lifestyle hotel campuses”, clusters of hotels totaling 500 to 700 rooms in the lifestyle, extended-stay and select-service segments, allowing a traveler a choice of which hotel best fits them. In addition to its expansion across the U.S., NewcrestImage opened its first Courtyard by Marriott in Vadodara, India, and is in the process of acquiring a resort in Karalui. The resort currently has 51 guest rooms and the company plans to add 20 glamping accommodations, a first of its kind in India.

Key International and Shaner Hotels announced the grand opening of the 156-suite SpringHill Suites by Marriott Jacksonville Beach Oceanfront in Florida. Shaner will operate the hotel, owned by Key International. The all-suite hotel offers an oceanfront restaurant and bar, a lobby market, fitness center and oceanfront pool. 

Midas Hospitality announced the opening of the 170-room Residence Inn by Marriott, the first hotel to be built in Clayton, Missouri, in 30 years. 

Oxford Capital Group and Quadrum Global announced the April 11, 2023, launch of Arlo Chicago in Chicago, Illinois. The 218-room property marks Arlo Hotels’debut into the Midwest and Chicago and its sixth hotel overall. Located in a historic tower, Arlo Chicago features a two-story entryway, an on-site restaurant and a bar.

EOS Hospitality has been selected by Key International to manage The Perry Hotel, a waterfront hotel located in Key West, FL. The property has 100 rooms, two outdoor pools and two restaurants.

Virgin Hotels New York City celebrated its official opening.

A New York hotel union agreed with hotel owners and operators on a deal that would raise the wages of hospitality workers by $7.50 an hour, the Wall Street Journal reported. The five-year deal applies to 7,000 members of the Hotel and Gaming Trades Council.

A new retail, restaurant and entertainment development, in Scottsdale, Arizona, has signed on a high-profile hotel. Reverb by Hard Rock is planning to build a 168-key hotel at The Sydney, a $100 million project by Palmer Development Group. The Reverb is about eight to 12 months away from starting construction. 

The famed Cal Neva Resort in Lake Tahoe’s Crystal Bay has a new owner who plans to bring it back to life. McWhinney acquired the 13-acre site from a foundation affiliated with Oracle Corp.’s co-founder Larry Ellison. According to public records, McWhinney paid about $51 million for the property. The new owners plan to upgrade the property in conjunction with the Kor Group to reopen it as a Proper-branded hotel. The revamped Cal Neva would ideally open in 2026, to mark its centennial.

Olympia Hotel Management has been selected to operate Sun & Ski Inn and Suites, located in historic Stowe, Vermont. The property is co-owned by Mark and Rachel Vandenberg and Michael and Debi Diender. The 39-room hotel features Stowe Bowl and Stowe Golf Park, an onsite restaurant, a fitness center, hot tub, and an all-season indoor heated pool with a retractable roof. 

Best Western Hotels & Resorts announced the opening of the Best Western Plus in Horseheads, New York. Featuring 102 guest rooms and suites, the new build project offers seven meeting rooms, an indoor pool, a fitness center, and guest laundry access. In addition to the hotel’s sundry shop and full-service bar, an onsite restaurant will be opening in the coming months.

Terrapin Investments announced The Hotel Denver, in downtown Glenwood Springs, Colorado, is to undergo a two-phased renovation that will ultimately result in significant enhancements to the lobby, guest rooms/suites, and public spaces, said Mile Hile CRE. The first phase is well underway and will include new furniture and décor for the 73 guestrooms. All guest rooms are expected to be completely renovated by April 2023 with phase 2 kicking off this fall. The lobby will be updated and opened with direct access to the adjacent Brew Pub and a new lobby bar will be added. The owner will also add a total of 15 new rooms and suites from previously underutilized meeting and retail space. The lobby and rooms are expected to be complete by New Year’s Even 2024.

Construction has already begun on portions of the $130 million Harbor 31 development in Muskegon, Michigan. These include several of the 30 homes in the Viridian Shores neighborhood and a senior citizen living community. According to Harbor 31 LLC, construction plans this year also include two four-story apartment/retail buildings; a 68-slip marina; a 145-room “flagship” hotel; 20 townhomes known as The Meadows at Harbor 31; and a pool and pool house. 

Hunter Hotel Advisors announced the sale of the 115-room Fairfield Inn & Suites Kansas City Downtown Union Hill, Missouri. True North Hotel Group sold the property to an institutional buyer for an undisclosed amount. 

HVS Brokerage & Advisory announced the sale of the 64-key Comfort Suites Westchase Houston Energy Corridor in Houston, Texas. The property was purchased by Samay Resort from Jala Shiv. 

HVS Brokerage & Advisory also announced the sale of the 110-key Comfort Inn The Pointe, located in Niagara Falls, New York. The property was purchased by Empire Hotels from Maid of the Mist. The sale included an attached retail building, encompassing approximately 20,000 square feet of gross building area that is largely vacant. The buyer plans on renovating and reopening the retail space.

Braemer Hotels & Resorts Inc. finalized an extension of its $98 million mortgage loan for the 276-room The Ritz-Carlton Sarasota. The loan is being extended beyond its original maturity in April 2023 for an additional 6 months with one additional 6-month extension available. As extended, The Ritz-Carlton Sarasota loan will have a rate of SOFR +2.65 that will reset to SOFR interest rate cap at a strike of 5.25% with an expiry of October 4, 2023. The Company is also working with its lender on an extension or refinancing of its mortgage loans secured by the Hotel Yountville and the Bardessono, which have final maturities in May and August 2023, respectively.

El Mangroove, located on the Gulf of Papagayo in Costa Rica, has completed a six-month renovation. Thirty-six new suites have been added to the property. Along with the new suites, existing common areas were completely transformed including the SI&P Zone featuring four pools, a children’s pool, a pool bar, and four cabanas. There is also a new Mediterranean restaurant in addition to its two existing dining options.

Personnel Move

Oetker Collection has appointed Jens Hackebeil-Herrmann to chief financial officer and also a member of the firm’s executive committee. Hackebeil-Herrmann started at the firm in 2011, his last role as vice president of financing began in 2020. 

Europe Highlights

Blackstone is doubling down on its bet that staycations will prove to be more than a pandemic fad by pumping another £170 million into is holiday parks business. Two years ago, the private equity group acquired Haven as part of its near-£3 billion purchase of Bourne Leisure. It has set aside £170 million to invest in Haven and its 41 holiday parks this year, taking its total investment to more than £400 million since it bought the business. Most of the money will go towards adding new holiday homes at many of its parks, although several, including Quay West in south Wales and Allhallows in Kent, are due to have “major entertainment upgrades”. Haven will open Marina bars and stages at those sites, as well as new adventure villages. Several other parks will get smaller upgrades to existing facilities. 

Extendam signed a deal with Black Label Hospitality to open 31-room boutique hotel Maison Elle Amsterdam. The second Maison Elle hotel is located on the edge of Vondelpark and is set to undergo renovations in the coming months in preparation for its opening in August.