Article Summary:

From the desks of the Hotel News Now editorial staff:

  • Accor launches second phase of share buyback
  • Following Alua deal, Apple Leisure has big plans in Europe
  • Emaar confirms hotel deal with ADNH worth €600m
  • Accor’s debut Orient Express hotel to be in Bangkok
  • MGM Resorts, MGP enter agreement on two properties

Primary Category: 5 Things to Know

Secondary Categories: News

Accor launches second phase of share buyback: AccorHotels has launched the second tranche of its share buyback program for the amount of €500 million ($572.8 million), with a purchase period between today and 20 June, without being shorter than three months from today, according to a news release.

The first tranche, with a value of €350 million ($399 million), was completed in November.

Following Alua deal, Apple Leisure has big plans in Europe: Apple Leisure Group, which yesterday bought a majority stake in Spain’s Alua Hotels & Resorts, said now it plans to roll out the brand across Europe and seek more opportunities in the continent, writes Hotel News Now senior reporter Terence Baker. The deal comes on the heels of another deal in Spain, which saw Apple begin management of four hotels with operator Hesperia in November.

“We’ll open 16 hotels next year, four with Hesperia and 12 with Alua. Additionally, we are acquiring a management platform that will allow us to provide full services in Europe the same way we do it in America,” said Javier Coll, Apple’s executive vice president and chief strategy officer.

Emaar confirms hotel deal with ADNH worth €525m: Arabian Business reports Dubai-based hotel owner and developer Emaar has confirmed in a note on the Dubai Financial Market stock exchange that its November deal to sell five hotels to Abu Dhabi National Hotels is worth 2.2 billion United Arab Emirates dirhams ($598.4 million), although there is no indication as to the value of individual hotels.

In a company news release, Emaar’s Executive Vice President and COO Hasan Abdul Rahman Al Serkal said the impact of the transaction is expected to occur in the first quarter of 2019. The five properties are Address Boulevard, Address Dubai Mall, Address Dubai Marina, Manzil Downtown and Vida Downtown.

Accor’s debut Orient Express hotel to be in Bangkok: AccorHotels has announced the debut hotel for its Orient Express brand, a brand stemming from Accor’s 50%-50% joint venture with French national train operator SNCF Group announced in October 2017. The debut will be in the 78-story King Power Mahanakhon building in the Thai capital, Bangkok, and have 154 rooms. No opening date has been announced.

Belmond, which last week was sold to LVMH Moët Hennessy Louis Vuitton for $2.6 billion, used to be called Orient-Express Hotels Limited and still has ownership of the famed carriages of the Venice Simplon-Orient Express, but there are no connections between it and Accor.

MGM Resorts, MGP enter agreement on two properties: MGM Resorts International and its spinoff real estate investment trust, MGM Growth Properties, announced an agreement in which MGP will pay MGM Resorts $637.5 million for the investments MGM Resorts made to reposition Park MGM and NoMad Las Vegas, according to a news release. Under the agreement, the annual rent under the master lease will increase by $50 million.

"Park MGM and NoMad Las Vegas are exciting new concepts on the Las Vegas Strip, further enhancing our already outstanding portfolio," said James Stewart, chairman and CEO of MGM Growth Properties. "MGM Resorts has invested in the significant repositioning of Park MGM and NoMad Las Vegas and we are excited to partner with MGM Resorts for these iconic assets. We intend to fund the consideration through a combination of cash and availability under our credit facility. This transaction will be immediately accretive to our AFFO and further demonstrates the power of our business model and partnership with MGM Resorts."

Compiled by Terence Baker.

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Headline: 5 things to know: 20 December 2018

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Article Time: 11:12:00 AM