In brief: GFI Capital completes Beekman’s refi; Dalata launches in continental Europe
GFI Capital finalizes Beekman’s refi: New York-based GFI Capital Resources, through an affiliate, has completed a US$196 million refinancing of The Beekman, a Thompson hotel managed by Hyatt Hotels Corp in New York. The deal included a $130 million senior loan from OZK bank arranged by Newmark and a $65 million subordinate financing from bond investors on the Tel Aviv Stock Exchange. Proceeds from the funds raised will be used to pay off existing debt and outstanding obligations of the property, as well as to establish reserves for the hotel. The GFI subsidiary acquired the hotel in 2012, underwent extensive renovations and opened as The Beekman Hotel in late 2016. The revitalized property features 287 rooms, including 38 suites and two penthouses with private terraces on the rooftop and two restaurants curated by renowned chefs and restaurateurs Tom Colicchio and Daniel Boulud.
A French group acquires ski resorts: French hotel group Beaumier has acquired three hotels in the Swiss alpine region of Wengen from the Zinnert family for an undisclosed sum. All three hotels – Hotel Silberhorn, Hotel Belvedere and Wengener Hof – are centrally located in the village with ski-in/ski-out capabilities and views of the Jungfrau and Lauterbrunnen Valley. The acquisition is the first purchase for Beaumier outside of France and reflects the group’s desire to acquire high quality hotels in the main seasonal leisure destinations in Europe. The pre-existing portfolio is already made up of eight hotels spread over the French Alps, Provence and the Côte d’Azur.
Dalata’s first in mainland Europe: Dalata Hotel Group, Dublin, has entered into an agreement with Art-Invest Real Estate to acquire a new operating lease interest in the Nikko Dusseldorf Hotel. The acquisition marks Dalata’s debut in the continental European market. The 393-room hotel, now owned by Art-Invest and Dalata, has entered the transition phase and will reopen on February 15. The rent, with a guaranteed minimum, is determined by the revenue performance of the hotel. The term of the lease is 20 years, with the possibility of a 5-year extension. CBRE advised Dalata on the transaction.
The Times Square Hotel Tower Changes Ownership: A group of lenders led by Natixis will take over 20 Times Square, home to the 452-key Times Square Edition hotel, from Mark Siffrin’s Maefield Development. No other bid at a public auction on Jan. 26 could top the group’s offer, which was not disclosed. The Natixis group’s plans for the hotel have not been made public. Maefield Development defaulted on US$800 million leasehold debt in 2019 and has since been embroiled in legal issues. The hotel is the New York flagship property of the Marriott’s Edition brand and comprises approximately 90% of the tower. The rest of the building houses vacant commercial space, the main cause of Maefield’s default. Changes in hotel management are unlikely as the Edition brand has a strong management contract that cannot be affected by the change in ownership.
AWC acquires dusitD2 Chiang Mai: Thai developer Asset World Corp. acquired the 130-key dusitD2 Chiang Mai from Dusit Thani Properties REIT for 435 million Thai baht ($13.03 million). The Thai developer has also taken over Lhong 1919, a tourist attraction in Bangkok’s Thonburi district. The company plans to develop an integrated wellness destination managed by The Ritz-Carlton Hotel Co.
ShaD Prosperity Fund I: She Has a Deal (SHaD), a real estate investment platform for hotel ownership and development opportunities for women, launched SHaD Prosperity Fund I and announced a tour of 10 US cities to raise funds to support hotel projects led by women. The tour will begin in Miami, Florida on February 11 and will be open to small groups of individual investors and family offices, small entities and trusts. The tour is expected to continue until the first week of April.
Brookfield Property Partners will launch an auction for Center Parcs: Canadian property giant Brookfield Property Partners is reportedly launching a £4bn (US$5.3bn) auction to sell Center Parks UK, its subsidiary and Britain’s largest chain of holiday resorts. Brittany. Center Parks UK reported EBITDA profit worth £120 million (US$161.14 million) in the six months to October 7. Brookfield has reportedly entered into talks with PwC to help with the sale process. Investment banks have not yet been officially appointed to manage the auction. Brookfield could keep Center Parcs if no interesting agreement arises.
US Hotel Market Outlook: Despite the spread of the Omicron variant of COVID-19, December RevPAR in US hotels exceeded 2019 levels and there was strong improvement across geographies, asset type and scale of string, depending on State of the Union report on hotels in the United States by CBRE. Recent data on travel trends and leading indicators showed a slowdown in first-quarter demand for business and leisure travel, the report found, adding that office vacancy and remote working are headwinds for a near-term recovery in business travel. Thanks to the easing of international travel restrictions in November 2021, which triggered a significant increase in inbound international travel, New York, San Francisco, Los Angeles and Miami are expected to be the main beneficiaries this year. Short-term rental market share normalized as hotels reopened. Large units in southern destinations and drive-through destinations are driving revenue growth. Hotel delinquency and special services rates have steadily declined as fundamentals have improved. Rising construction costs and labor issues have slowed supply growth, with wage pressures and labor shortages showing no signs of abating.