Major developments in the hospitality sector include Marriott’s partnership to launch luxury safari camps in Kenya, Hyatt’s tender offer for Playa Hotels & Resorts, Palladium’s $20 million expansion project in Jamaica, and Apple’s positive earnings report. Additionally, Hamilton Point secured a loan modification, Fertitta became a principal shareholder in Wynn, and Canada reported hotel industry growth, alongside the Middle East’s robust hotel pipeline.
Marriott International is collaborating with the Lazizi Group to introduce two luxury tented safari camps in Kenya: The Ritz-Carlton, Masai Mara Safari Camp and JW Marriott Mount Kenya Rhino Reserve Safari Camp. Each camp will feature 20 keys, with the Ritz-Carlton set to launch in August 2024 and the JW Marriott following in early 2026. These properties will expand Marriott’s luxury portfolio in Kenya, now comprising seven locations and more than 1,100 rooms.
Hyatt Hotels has initiated a tender offer for Playa Hotels & Resorts, with indications of interest for Playa’s owned real estate portfolio reported by analyst Michael Bellisario of R.W. Baird. The tender offer, valued at $2.7 billion, requires at least 80% of Playa shares to be tendered to meet its minimum condition and expires on April 25.
In Jamaica, Palladium Hotel Group and Grupo Empresas Matutes are investing $20 million to expand the Grand Palladium Hotels & Resorts in Montego Bay. This project will add over 948 new rooms to the resort, which currently includes a total of 1,049 rooms across two hotels: Grand Palladium Lady Hamilton Resort & Spa and Grand Palladium Jamaica Resort & Spa.
Apple Hospitality REIT reported a RevPAR growth of 2.7% in Q4 year-over-year and a full-year growth of 1.4% for 2024. Their hotels reported a 1.7% increase in ADR and a 2.6% rise in occupancy. In 2024, Apple acquired two hotels while selling six for a total gross sales price of approximately $63.4 million, consolidating their strategic expansion efforts.
Hamilton Point Investments has secured a loan modification for an undisclosed amount related to the Hotel Indigo Detroit Downtown. This financial restructuring facilitates the management of ongoing loans after replacing previous costly covenants, effectively supporting the hotel’s operational stability.
Tilman Fertitta has emerged as a principal shareholder in Wynn Resorts, possessing or controlling approximately 12.6 million shares, surpassing the 10% threshold. Fertitta’s stake elevates him to the position of the largest individual shareholder, reflecting his significant influence within the company.
Canada’s hotel industry showed promising growth in January, reporting a 49.8% occupancy rate, a 2.7% increase in ADR, and a RevPAR rise of 3.1%. British Columbia recorded the highest occupancy at 52.9%, while Calgary saw the lowest at 45.3%, indicating a diverse performance across the provinces.
The Middle East maintained a robust hotel pipeline with Saudi Arabia and Egypt leading the charge. With 619 projects totaling 155,428 rooms, this represents an uptick of 2% in projects and 6% in rooms year-over-year. Riyadh and Dubai are the cities with the largest developments, highlighting continued growth in the luxury hotel segment.
Radisson Hotel Group has signed a new property, the Era Hotel Bhubaneswar, set to open in the latter half of 2025. This addition reinforces Radisson’s expanding presence in India, aligning with the group’s strategic growth plans.
In summary, the hospitality sector is witnessing dynamic growth in various regions, with Marriott and Hyatt executing significant projects and acquisitions. The expansion into luxury safari experiences in Kenya by Marriott, the strategic tender offer by Hyatt, and various developments in Jamaica and Canada illustrate a strong recovery and investment potential in the hotel industry. Notably, the Middle East’s hotel pipeline reflects ongoing optimism for future growth, particularly in luxury accommodations.
Original Source: www.hotelinvestmenttoday.com
