From the desks of the Hotel News Now editorial staff:
- PPHE joins FTSE 250 and FTSE All Share indices
- Brand CEOs take long-term view of pain points
- American Airlines to build hospitality center at Texas HQ
- Trump plans for Mexico tariffs to begin next week
- Ashford agrees to acquire Remington
PPHE joins FTSE 250 and FTSE All Share indices: Amsterdam-based PPHE Hotel Group, which as of the end of 2018 has £1.6-billion ($1.8 billion) worth of assets under ownership and management, has joined both the London Stock Exchange-administered FTSE 250 and FTSE All Share indices, according to a news release.
Boris Ivesha, PPHE’s president and CEO, said inclusion in the prestigious FTSE 250 is a “culmination of much recent corporate activity, which has been focused on engaging with a wider potential investor base and improving liquidity.”
PPHE owns and operates under the Art’otel brand and has an exclusive license with the Radisson Hospitality Group to develop and operate Park Plaza Hotels & Resorts’ properties in Europe, Middle East and Africa.
Brand CEOs take long-term view of pain points: Speaking at a keynote panel at the NYU International Hospitality Industry Investment Conference, hotel CEOs said they were taking a long-term view over the issues facing them, focusing on what can be changed and less on what cannot, writes Hotel News Now’s Robert McCune.
Tariff disputes with China is one such issue, with Hyatt Hotels Corporation President and CEO Mark Hoplamazian saying “Chinese outbound travel to the U.S. declined by 5.7% in 2018, according to U.S. Customs data. That’s notable … but short-term … (and) it’s not sensible to think there could be backlash (from a trade war) that will have a lasting impact.”
American Airlines to build hospitality center at Texas HQ: American Airlines has announced it will build a $250-million hospitality center at its headquarters in Fort Worth, Texas, according to the Dallas Morning News. The facility will include a 600-room hotel and a conference and training center for its employees.
The new facility will replace the company’s flight attendant school and 300-room hotel currently on-site. Work on the project should begin within two months and is expected to be completed in mid-2021.
Trump plans for Mexico tariffs to begin next week: Speaking during a state visit to the United Kingdom, President Donald Trump hinted he planned to impose tariffs on Mexican products as of next week, The New York Times reports. The possibility of tariffs is part of efforts to force the hand of the Mexican government to stem the flow of migrants attempting to enter the U.S. through Mexico, the number of which Trump said is “unacceptable,” according to The New York Times.
Trump said he planned to impose tariffs of 5% on all Mexican imports but would raise that percentage anywhere up to 25%, according to the article. Opposition might come from his fellow Republican politicians who fear the move might unduly hurt their states, especially those in the south.
Ashford agrees to acquire Remington for $275m: Ashford Inc., the external adviser to real estate investment trusts Ashford Hospitality Trust and Braemar Hotels & Resorts, which collectively have 135 hotels, more than 29,000 rooms and approximately $7.4 billion in assets, has agreed to acquire Remington Holdings’ hotel management business for $275 million, according to a news release.
“The proposed acquisition of Remington’s high-margin hotel management business will immediately add scale, diversification and an enhanced competitive position for Ashford in the hospitality industry, while also expanding the breadth of services we offer to our advised REITs,” Ashford Chairman and CEO Monty Bennett said in the release.
Monty Bennett and his father, Archie Bennett Jr., together own Remington Holdings.
Based on 2018 financial results, the acquisition multiple equates to 11.8 times adjusted earnings before interest, tax, depreciation and amortization, which compares to an average of 16.5 times for recent comparable transactions. The transaction is expected to close in the fourth quarter of 2019.
Compiled by Terence Baker.