5 things to know: 9 October 2018
 
5 things to know: 9 October 2018
09 OCTOBER 2018 9:35 AM

From the desks of the Hotel News Now editorial staff:

  • Hurricane Michael to hit Gulf Coast as Category 3 storm
  • North Carolina hotels see strong performance during Florence recovery
  • Pending Pebblebrook-LaSalle merger on schedule to close in November
  • AccorHotels completes acquisition of SBE stake
  • Peel to merge nine hotels under Best Western soft brands

Hurricane Michael to hit Gulf Coast as Category 3 storm: The National Hurricane Center announced that Hurricane Michael is expected to make landfall as a Category 3 storm along the Gulf Coast Wednesday, and is forecasted to be “the most destructive storm to hit the Florida Panhandle in decades,” NPR reports.

The hurricane is a Category 2 storm currently and was 365 miles south of Apalachicola, Florida, moving north-northwest at 12 mph with winds of 90 mph, according to NPR.

“Forecasters predict the storm will bring torrential rains and winds of upwards of 120 mph,” the news outlet reports. Hurricane, tropical storm and storm surge warnings have been put in place by the National Hurricane Center for “more than 300 miles of the Florida coast.”

Marriott International released a statement saying the company is “closely monitoring Hurricane Michael, and have implemented storm preparation protocols at our hotels in the predicted path. The safety of our guests and employees is always a top priority. We are in close contact with local authorities, and take guidance and direction from them as the situation warrants. We encourage those planning to travel to the storm area to check news updates for the most current information, and amend plans accordingly. Hotels in the impacted area are reviewing cancellation fees; details may vary by hotel. To modify or cancel an existing reservation, please go to Marriott.com, SPG.com, or the Marriott or SPG apps.”

North Carolina hotels see strong performance during Florence recovery: In other hurricane-related news, STR’s Claudia Alvarado and Hannah Smith looked at hotel performance in the Carolinas and Virginia in the weeks after Hurricane Florence hit. (STR is the parent company of Hotel News Now).

The research shows that North Carolina saw the most positive impact in the three key performance metrics in the week after the hurricane’s landfall compared to other areas directly affected by Hurricane Florence.

“The nearly 25% increase in revenue per available room over that week last year was driven mainly by occupancy growth, while South Carolina and Virginia saw a decrease across almost every KPI,” Alvarado and Smith write.

Pending Pebblebrook-LaSalle merger on schedule to close in November: Pebblebrook Hotel Trust and LaSalle Hotel Properties announced Tuesday that the pending merger between the two companies is on track for a planned closing date of 30 November, according to a news release.

Pebblebrook and LaSalle will hold meetings with shareholders on 27 November to approve Pebblebrook’s proposed acquisition of LaSalle

The joint proxy statement/prospectus filed “as part of a registration statement on Form S-4 in connection with the proposed merger, is expected to be declared effective by the U.S. Securities Exchange Commission (“SEC”) on (29 October).”

AccorHotels completes acquisition of SBE stake: AccorHotels announced that the French-based company completed the acquisition of a 50% stake in SBE Entertainment Group, according to a news release.

The release states, “This long-term investment will allow SBE to leverage AccorHotels’ leading global hospitality platform while remaining an independent luxury lifestyle operator.” SBE founder, chairman and CEO Sam Nazarian and his management team will retain global headquarters in New York and continue to lead the company.

“This partnership with AccorHotels marks the beginning of a new chapter in SBE’s history, and I’m thrilled that this strategic partnership has now been completed,” Nazarian said in the release. “SBE has grown rapidly since the acquisition of Morgans Hotel Group in 2016. The SBE portfolio will grow to over 50 hotels by 2020, paired with tremendous expansion in the residential, culinary and entertainment segment of the 360 lifestyle experience, including over 50 global venues in the pipeline.”

Peel to merge nine hotels under Best Western soft brands: Privately-held company Peel Hotels has signed an agreement to merge its portfolio of nine hotels with Best Western Great Britain, according to a news release.

Eight of the hotels under the portfolio will join Best Western’s Sure Hotel Collection soft brand while the one other hotel will join the BW Signature Collection, another soft brand under the company.

“This deal is a great endorsement of our strategy for the future,” said Rob Paterson, chief executive of Best Western Great Britain, in the release. “We recognize that owners and operators want to retain control and leverage the independence and heritage of their properties in Great Britain. We work in partnership to provide support, strategies and resources to help them do that driving total revenue and optimizing costs.”

A spokesperson for Best Western told HNN’s Terence Baker that the portfolio was not purchased by Best Western, and Peel Hotels will retain operations of the nine hotels.


Compiled by Danielle Hess.

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