Choice Hotels International’s Cambria Suites brand took a development hit during the Great Recession, but is otherwise alive and well, reports HotelNewsNow.com’s Stacey Mieyal Higgins.
The brand was launched in 2005 during the high times—at one point, there were 59 properties under contract, according to a 2007 news release from Choice. Fast-forward to 2011 and there are only 20 properties open after the economic downturn knocked out financing and led many contracts to expire.
“This is the growth brand for Choice,” said Michael Murphy, newly appointed senior VP for the brand, adding to his role as senior VP of global sales for Choice.
FelCor Lodging Trust is planning to sell up to 14 hotels by the end of this year and bring another 21 to the market, reports HotelNewsNow.com’s Jason Q. Freed.
The asset-sale strategy is part of a plan to improve portfolio quality, said Andrew J. Welch, executive VP and CFO.
“We have taken a number of steps over the recent years to improve our balance sheet and refinance our debt,” he said.
In other financial news this morning, FelCor, along with fellow real-estate investment trust LaSalle Hotel Properties, is planning share offerings.
FelCor said it intends to offer US$500 million of senior secured notes. Proceeds will aid in funding the REIT’s recent purchases of The Royalton Hotel and Morgans Hotel in New York. Offering proceeds will also be used for general corporate purposes, including to reduce indebtedness and fund future acquisitions.
Also, LaSalle announced the sale of 7 million common shares to Goldman Sachs & Company, which is acting as sole underwriter of the offering. Goldman also has the option to purchase up to an additional 1.05 million shares.
Proceeds will be used to fund acquisitions; pay down amounts outstanding under its senior unsecured credit facility and the unsecured credit facility of the company’s taxable REIT subsidy (LaSalle Hotel Lessee); and for general corporate purposes.
The hotel transactions market continues to churn. The Continental South Beach Hotel in Miami Beach, Florida, sold for US$61 million, Jones Lang LaSalle Hotels said Monday.
InSite Group purchased the 251-room property from RFR Holding LLC.
Kathleen S. Tyson, head of Marriott International’s Residence Inn brand, announced plans over the weekend to resign from her position at Marriott. Tyson, who has been with Marriott for about five years and will now work as a consultant, cited a desire to spend more time at home with her family, a Marriott spokeswoman confirmed to HotelNewsNow.com Monday.
This is Tyson’s last week at Marriott. The company has identified “several” potential internal candidates who could replace Tyson as VP of brand management for Residence Inn, the spokeswoman said.
Compiled by Shawn A. Turner.