5 things to know: 21 November 2014
21 NOVEMBER 2014 9:26 AM
From the desks of the Hotel News Now editorial staff:
• China insurer buys Sydney Sheraton for AU$463m
• Brookfield backs out of Revel deal
• STR Global releases October global hotel data
• Italian fund enters hotel space
• QHotels adds 6 De Vere properties
China-based Sunshine Insurance Group Limited has acquired a Sheraton-branded hotel in Sydney from Starwood Hotels & Resorts Worldwide for $463 million Australian dollars ($399 million).
Starwood Hotels will continue to manage the 5-star property.
“We’re continuing to see strong investor interest around the world for our remaining assets,” Simon Turner, Starwood’s president of global development, said in a statement.
Brookfield Property Partners is backing away from its planned $110-million deal for the shuttered Revel Casino in Atlantic City, New Jersey, according to Bloomberg.
Built for $2.4 billion, the casino closed in September. Brookfield outbid Florida developer Glenn Straub, who challenged the fairness of the auction.
STR Global, sister company of HNN, has released global hotel performance results for October.
Americas: Compared with October 2013, the region reported a 5% increase in occupancy to 67.7%, a 4.1% increase in average daily rate to $119.50 and a 9.3% increase in revenue per available room to $80.91.
Europe: The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, Euros and British pounds.
Asia/Pacific: The region’s occupancy was down 0.6% to 72%, its ADR fell 3.6% to $117.54 and its RevPAR decreased 4.2% to $84.65.
Middle East/Africa: The region reported a 7.2% increase in occupancy to 67.6%, a 2.4% decrease in ADR to $182.34 and a 4.6% increase in RevPAR to $123.19.
Italian wealth fund Fondo Strategico Italiano is dipping its toes into the hotel industry, courtesy a deal with Rocco Forte Hotels, according to HNN’s Terence Baker.
The fund injected £60 million ($95 million) of equity into Rocco Forte, which will help the company double its portfolio during the next five years and also help pay off debt.
“We will be a long-term, strategic investor in stabile industries that provide good job prospects and good return on investment. We want to invest in companies that want other investors and will open up their own capital, and we very much prefer to have minority stakes and sensible debt covenants,” the fund’s director of investor relations Barbara D’Andrea said.
QHotels has added six former De Vere Hotels and De Vere Luxury Lodges to its portfolio.
The properties are located across the United Kingdom and include the 5-star Cameron House in Loch Lomond and the Dunston Hall in Norfolk.
The deal increases QHotels’ portfolio to 27 properties.
Compiled by Shawn A. Turner.