This just in: There are more than 1,100 hotels in distress worth almost US$28 billion in the U.S., which account for almost 190,000 rooms, according to Jessica Ruderman, senior analyst, Real Capital Analytics.
GlobeSt.com reported the total value for all distressed commercial real estate climbed to US$114.2 billion in August.
MGM Mirage announced 10 new management deals, which it expects to expedite growth of its management division that was established two years ago, according to an Associated Press story.
MGM Mirage will manage hotels abroad without spending money on land or development, which is part of its effort to cut costs and risk. Several of the hotels will carry Bellagio and MGM Grand flags. In most cases, the new deals don’t include casinos and provide MGM Mirage with 2 percent to 3 percent of gross sales plus as much as 10 percent more if a property achieves profit goals, said Gamal Aziz, president and CEO of MGM Mirage Hospitality.
The Holiday Inn hotel in Adelaide, Australia, was sold for about AUD$35 million (about USD$29.3 million) to Malaysian group Hotel Grand Central, reports TradingMarkets.com. The Adelaide hotel market had remained strong, said Mark Durran of Jones Lang LaSalle Hotels. He expected interest from Asian and Australian investors to increase.
The 224-room Bogota Marriott Hotel in Colombia opened. The hotel is Marriott International’s first branded hotel in Colombia and is operated under a franchise agreement with Real Hotels & Resorts, a subsidiary of Grupo Poma of El Salvador.
In addition to the Bogota Marriott Hotel, Marriott International and Real Hotels & Resorts will partner on a second hotel in Colombia in 2010, the JW Marriott Hotel Bogota.
And in typical Monday style, here’s a rundown of notable reports expected from the U.S. government this week: Construction Put in Place; Manufacturing Report on Business; and Assets and Liabilities of Commercial Banks in the U.S.
See the complete schedule here.
Compiled by Stacey Mieyal Higgins.
