Marriott is opening two luxury safari camps in Kenya, Kansas-based Hyatt has initiated a tender offer for Playa Hotels, Palladium starts a $20M expansion in Jamaica, Apple Hospitality sees RevPAR growth, HPI modifies a loan, Fertitta becomes a major Wynn shareholder, Canada’s hotel industry improves, the Middle East’s hotel pipeline grows, and Radisson signs a new hotel in India.
Marriott International is set to expand its luxury offerings in Kenya with two new tented safari camps in partnership with Lazizi Group. The Ritz-Carlton, Masai Mara Safari Camp and JW Marriott Mount Kenya Rhino Reserve Safari Camp, both with 20 keys, are scheduled to open in August 2024 and early 2026, respectively. These additions will enhance Marriott’s portfolio, which now includes seven properties and over 1,100 rooms in Kenya.
Hyatt has initiated a tender offer for Playa Hotels & Resorts, and it has received preliminary interest for the acquisition of Playa’s owned real estate portfolio. Analyst Michael Bellisario noted that any progress towards selling Playa’s real estate would be favorable. The tender offer closes on April 25, with the total deal valued at $2.7 billion requiring at least 80% of Playa shares to be tendered.
In Jamaica, Palladium Hotel Group, alongside Grupo Empresas Matutes, has commenced a $20 million expansion project at Grand Palladium Hotels & Resorts in Montego Bay. This initiative will add over 948 new rooms to the existing inventory of 1,049 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 growth of 1.4% for the full year of 2024. This performance stems from increased business transient demand, with ADR growth at 1.7% and occupancy gains at 2.6%. The company also acquired two hotels for approximately $196.3 million and divested six properties in 2024, realizing gains totaling around $19.7 million.
Hamilton Point Investments has secured a loan modification for the 241-key Hotel Indigo Detroit Downtown, aided by CooperWynnCapital. This modification enables HPI to retain a favorable loan structure while alleviating previous costly covenants. They did not disclose the exact amount of the loan modification.
Tilman Fertitta has become the principal shareholder in Wynn Resorts, owning approximately 12.6 million shares, surpassing the 10% ownership threshold. This designation makes Fertitta the largest individual shareholder at Wynn after previously increasing his stake to 9.9% over the last year.
Canada’s hotel industry reported a positive performance in January, with occupancy at 49.8% and RevPAR at CAD 89.60, both reflecting year-over-year increases. British Columbia led with the highest occupancy rates. Overall, the hotel sector is benefiting from improved room rates across the country.
According to Lodging Econometrics, the Middle East hotel pipeline showed robust growth in the fourth quarter, reaching 619 projects and 155,428 rooms. Saudi Arabia and Egypt lead this pipeline, which includes 301 projects currently under construction. The luxury segment sees a notable increase with 179 projects, indicating strong persistent demand for upscale hotel experiences in the region.
Radisson Hotel Group has announced plans to open the Era Hotel Bhubaneswar under the Radisson Individuals brand, aimed to launch in the latter half of 2025. This marks an essential expansion for Radisson in the Indian market, which is witnessing increased demand for higher-end accommodations.
The latest developments in the hospitality industry highlight significant expansions and acquisitions, reflecting positive trends across various regions. Marriott’s luxury camps in Kenya, Hyatt’s strategic tender offer for Playa, and Palladium’s expansion in Jamaica contribute to a healthy growth trajectory. Apple Hospitality’s earnings demonstrate solid revenue performance, while the Middle East’s hotel pipeline indicates strong future development. Overall, these movements signify resilience and potential for future growth in the sector.
Original Source: www.hotelinvestmenttoday.com
