Article Summary:

From the desks of the Hotel News Now editorial staff:

  • Deutsche acquires 51% of Zleep, fifth brand
  • Ashford buys New York Midtown hotel for $195m
  • More innovation needed in digital marketing
  • AccorHotels confirms final Orbis buyback numbers
  • Four Seasons announces $400m Okinawa resort

Primary Category: 5 Things to Know

Secondary Categories: News

Deutsche acquires 51% of Zleep, fifth brand: Deutsche Hospitality has bought a 51% stake in Danish hotel firm Zleep Hotels to bring a fifth brand into its stable and the first in the budget and economy segment. No price details were given, but executives state the deal gives Deutsche a route into Scandinavia, where it currently has no assets, and Zleep a route in Central Europe and beyond.

Zleep CEO Peter Haaber, who also runs white-label management company Core Hospitality, remains in his post. The company opened its 11th hotel on Monday. All are in Denmark, but a debut in Sweden is scheduled later this month. Zleep plans to have 40 hotels by 2025, while the deal now boosts Deutsche’s portfolio to approximately the 150 mark.

Ashford buys New York Midtown hotel for $195m: Real estate investment trust Ashford Hospitality Trust has paid $195 million for the 310-room Embassy Suites by Hilton New York Midtown Manhattan. The deal on a per-key basis is $629,000.

Ashford arranged a $145 million non-recourse mortgage for the deal, which runs for three years with a possible two-year extension and at a LIBOR (London inter-bank offered rate) of 3.9%. The hotel, which opened in January 2018, is Ashford’s first foray in Manhattan.

More innovation needed in digital marketing: Hoteliers at the first day of the 2019 HSMAI Digital Marketing Strategy Conference in New York City said the industry is not doing enough to tailor marketing messages to guests, stating that emotion is the No.1 reason consumers return to individual hotels and brands.

Panelists on a session on marketing said that while the ultimate goal is top- and bottom-line revenue, hoteliers need to better balance intuitive, emotional marketing and new general data-protection regulations. Flo Lugli, interim chief commercial officer, Americas for Radisson Hotel Group, underlined the point, saying “emotion is the number one reason why people keep coming back to make a connection to a brand. … (Companies now are) focusing back on all areas of the funnel.”

AccorHotels confirms final Orbis buyback numbers: AccorHotels has confirmed the final number of shares that it has acquired in its Polish hotels-firm subsidiary Orbis S.A., announced last November. The French hotel firm said it will now own, directly and indirectly, 85.84% of Orbis’ share capital.

Accor added 15.3 million shares in Orbis were purchased by third-party investors at a per-share offer price of 95 Polish zlotys ($25.18). The total consideration of the tender is PLN1.45 million ($383.6 million), which constitutes 33.15% of the Orbis’ share capital.

Four Seasons announces $400m Okinawa resort: Four Seasons Hotels & Resorts has announced it will open a $400-million resort on the Japanese island of Okinawa. To be named the Four Seasons Resort & Private Residences Okinawa, the project is in partnership with Berjaya Okinawa Development Co. Ltd., a wholly-owned subsidiary of Malaysian group Berjaya Land Berhad, according to a news release.

The 100-acre site, which will have 120 hotel rooms and 160 residences and villas, is expected to take four years to develop. The two parties cooperated on another Japanese asset, the Four Seasons Hotel and Residences Kyoto that opened in December 2016.

Compiled by Terence Baker.

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Headline: 5 things to know: 24 January 2019

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Article Time: 11:16:00 AM