Today’s news in brief – 11/3/24
Starwood Capital plans to merge with Jaws Mustang Acquisition Corp, signing a non-binding letter of intent for a joint venture acquiring De Vere and 1 Hotels portfolios. Final agreement subject to investor, third-party consents, and regulatory review. De Vere includes historic UK estates; 1 Hotels focuses on sustainability with properties in London and New York. Details pending a definitive agreement.
Radisson Hotel Group has welcomed The View Hotel Folkestone to its portfolio, situated in Kent with 46 rooms and a seaside location overlooking the English Channel. The hotel offers various room options and a restaurant serving diverse cuisine. Adela Cristea praises its alignment with Radisson standards. The addition expands Radisson Individuals’ presence to seven properties in the UK and Ireland, part of its global expansion to 75 properties. Owners Mark Rees and Dave Mellish express excitement for the partnership, anticipating enhanced guest experiences. The hotel’s strategic location facilitates accessibility to major transport hubs.
Hotel values across Europe in 2023 remained steady, reflecting post-pandemic recovery and strong room rates, despite geopolitical challenges and rising operating costs. The HVS European Hotel Valuation Index showed a modest 1% increase, maintaining values at 97% of 2019 levels. Major cities like Paris, London, Zurich, Amsterdam, and Rome remained highly valued. Analysts anticipate stability in price changes for 2024, driven by potential declines in interest rates and modest revenue growth. Investors have maintained capital availability, considering hotels as a strong investment against inflation.
Generator and Freehand Hotels has reported a surge in 48-hour stays, signalling a comeback for weekend city breaks and new trends like gig-tripping and sport-led tourism. Earnings are up 28% from 2022, with reservations rising by up to 64% across European and US properties. Post-pandemic, there’s a decline in long weekend getaways, with guests favouring shorter city breaks. Gen Z and Millennials are driving bookings, especially during concerts and festivals. Sporting events like the Six Nations Championship and the Olympics contribute to destination hotspots. Shoulder season getaways are rising in popularity. Alastair Thomann, CEO, highlights cultural trends influencing global bookings.
