From the desks of the Hotel News Now editorial staff:
- Summit to spend $164m on four assets
- Arora to become UK’s largest private owner-operator
- AccorHotels COO talks of FRHI buy on first anniversary
- Lebanese bank commissioned to sell Alwaleed hotels
- Airbnb plans rental caps in Paris, other parts of Europe
Summit to spend $164m on four assets: Summit Hotel Properties announced agreements to buy four hotels for an aggregate fee of $164 million, or approximately $252,000 per key, which represents a 12.1-times multiple on the hotels’ combined trailing 12-month earnings before interest, tax, depreciation and amortization as of this September, according to a news release.
The four assets, totaling 652 rooms, are the 207-room Courtyard New Haven at Yale, the 175-room Residence Inn Cleveland Downtown, the 148-room Hilton Garden Inn Boston/Waltham, and the 122-room Homewood Suites by Hilton Tucson/St. Philip’s Plaza University.
Arora to become U.K.’s largest private owner-operator: The Arora Group, which has its base at London’s Heathrow Airport, has announced new agreements with Hilton to open, renovate and rebrand hotels in the United Kingdom, leading it to become the U.K.’s “largest private owner-operator of hotels” with more than 4,000 keys, according to a news release.
The announcement outlined that the existing Arora Hotel Gatwick/Crawley, at London Gatwick Airport, is to be refurbished and rebranded as the DoubleTree by Hilton Gatwick/Crawley and the Hilton London Gatwick Airport, already in the Hilton camp, is to undergo “significant investment.” Arora also currently is developing a 360-room hotel at Heathrow’s Terminal 2, which it announced will be a Hilton Garden Inn, the news release states.
AccorHotels COO talks of FRHI buy on first anniversary: Kevin Frid, who was named AccorHotels’ COO, North and Central America, about one year ago following the French firm’s buy of FRHI Holdings, said it’s been a busy 12 months growing the FRHI brands of Fairmont, Raffles and Swissôtel, educating American travelers to AccorHotels and its brands and establishing a new loyalty program, reports HNN’S Stephanie Ricca.
Frid said the firm has “lots of untapped potential in the North and Central America and Caribbean regions” but that one major consideration is making sure those FRHI brands retain their magic.
“We want to keep these brands pure, but how do we take advantage of the Accor world?” Frid asked.
Lebanese bank commissioned to sell Alwaleed hotels: According to Lebanese news agency The Daily Star, a commercial bank in the country has been commissioned to seek the sale of two properties in Beirut partly owned by the chairman of Saudi Arabia’s Kingdom Holding Company, Prince Alwaleed bin Talal, who is currently under house arrest, allegedly for corruption.
The assets are the Mövenpick Hotel Beirut and the Four Seasons Hotel Beirut, with the Daily Star reporting the Four Seasons could be sold for $110 million, a “price far below the real value of the landmark, 300-room hotel.”
Airbnb plans rental caps in Paris, other parts of Europe: Airbnb is planning to introduce rental curbs in Paris, and perhaps other European cities, in a bid to placate regulators—in the U.S. and Europe—concerned about the room-sharing company’s effect on housing crises in the continent’s major cities, according to the Wall Street Journal.
Airbnb said it would cap the number of days per year that Airbnb hosts could rent out units in the center of Paris, where the WSJ said the firm currently has 65,000 listings, to within Paris’ “legal limit on short-term rentals of noncommercial homes to 120 days a year.” Airbnb enforced similar curbs in London and Amsterdam last year, and the latest move suggests this template will be the one replicated in markets where regulators voice concerns. London limits rentals of up to 90 days per year.
Compiled by Terence Baker.