Ace Hotels Bought for $85 Million

North America
9 minutes

The DJIA fell 392 points but Nasdaq was up 16, the S&P 500 rose 8 points and the 10-year treasury yield was up .02 to 3.54%. Lodging stocks were modestly higher with no major movers.

Investment firm Sortis agreed to acquire Ace Group International for $85 million. The all-cash deal will give Sortis the boutique Ace Hotels brand and its hotel management company. Ace currently has about 10 hotels in operation. Sortis said they intend to grow the portfolio of hotels to 30 by expanding where Ace Hotels operates. The company will grow Ace through both new development and acquisition. (Analysis.)

Travel data for the U.S. released by the National Travel and Tourism Officeshowed that in November 2022: International visitors spent more than $15.9 billion on travel to, and tourism-related activities within, the United States, an increase of nearly 57% compared to November 2021. Americans spent more than $15.2 billion traveling abroad, yielding a balance of trade surplus of $703 million for the month. January through November 2022, international visitors have spent more than $146.0 billion on U.S. travel and tourism-related goods and services, up more than 103% when compared to the same period in the previous year. Purchases of travel and tourism-related goods and services by international visitors traveling in the United States totaled $8.6 billion in November 2022, an increase of 77% compared to 2021. Travel receipts accounted for 54% of total U.S. travel and tourism exports in November 2022. Fares received by U.S. carriers from international visitors totaled $3.2 billion in November 2022, an increase of 88% compared to the previous year. Passenger fare receipts accounted for 20% of the total U.S. travel and tourism exports in November 2022. Expenditures for educational and health-related tourism, along with all expenditures by border, seasonal, and other short-term workers in the United States totaled $4.2 billion in November 2022, an increase of 15% when compared to the previous year. Medical tourism, education, and short-term worker expenditures accounted for 26% of total US travel and tourism exports in November 2022.

Marriott is testing a mechanical device where with the press of a button, a hotel bed would rise into the sky and in its place, transform into a sofa, described as a new “magic“ bed. The move would allow Marriott to add rooms to preexisting properties, thanks to the reduced need for floor space. This would allow the company to impress the hotel owners with increased revenue potential for each square foot.

Twenty Four Seven Hotels completed the renovation of the 150-room Four Points by Sheraton Tucson Airport, located in Tucson, Arizona. The multi-million dollar refurbishment upgraded the hotel’s guest and meeting rooms, public spaces and restaurant. The renovation also included adding new furnishings, bathrooms and linens throughout the property. The three-story building hotel features an outdoor pool, hot tub, fitness center, reimagined restaurant and bar and flexible banquet/meeting space.

Hospitality Ventures Management Group announced the 117-room Holiday Inn Steamboat Springs in Colorado was added to its portfolio of third-party management hotels. The hotel is owned by Mission Hill Hospitality and offers 800 square feet of meeting space, a business center, indoor pool and hot tub, seasonal outdoor pool and hot tub, a fitness center and a restaurant and bar.

Remington Hotels announced its management agreement for Crowne Plaza College Park – Washington, DC, which has a close relationship with the University of Maryland. In its role, Remington oversees the property’s operations, supporting all on-property teams. Remington will also assist the team in strategically aligning the property to maximize revenue and profits for its owners. In addition to managing the property’s day-to-day operations, Remington will also be responsible for deploying digital marketing, sales and revenue strategies to maximize revenue generation. The Crowne Plaza College Park – Washington DC is a recently remodeled hotel with 291 guestrooms and over 10,000 square feet of meeting space. 

Aimbridge Hospitality’s specialized Full Service operating division has been selected to manage the Seaview, a Dolce Hotel by Wyndham in Galloway, New Jersey. The 296-key property offers outdoor tennis courts, indoor and outdoor pools, a nature trail and two golf courses.

Open while undergoing a multi-million-dollar renovation, the Artisan Hotel Boutiqueis evolving into The Lexi – Elevations Hotels and Resorts new 64-room hotel that will be the first in Las Vegas, NV to embrace the idea of cannabis-friendly hospitality. The Lexi will be home to a new Cajun-inspired steakhouse, Artisan Bar & Lounge and The Lexi Pool. Additionally, The Lexi has created a new grand lobby that is highlighted by its towering ceilings, an indoor water feature, a new walk-up Café, cocktail service, and live music and intimate entertainment concepts. The property is under the leadership and ownership of Elevations Hotels and Resorts

She Has a Deal (SHaD) announced that 2022 SHaDPitch Today’s Woman competitor, Amina Gilyard James, acquired the 70-room Quality Inn in the Raleigh neighborhood of Memphis, Tennessee. Located a short drive from downtown Memphis, the hotel includes a business center and an indoor heated pool and hot tub. James’ company Duke Ventures plans to invest $500,000 to refresh the property with new paint, FF&E and additional cosmetic improvements. The Quality Inn marks Duke Venture’s third hotel, but its first as the sponsor and general partner. Duke Ventures plans to acquire two additional hotels over the next three to five years.

Cecil County will become home to Great Wolf Resorts’ largest lodge in the company’s history when the resort opens in August. Great Wolf Lodge Maryland will offer 700 family-style suites, a variety of dining options, 12,000 square feet of conference space, 128,000 square foot water park with two dozen waterslides, and Great Wolf Adventure Park,

Accor announced the creation of Accor One Living, an industry-first platform dedicated to the integrations of innovative hospitality solutions into mixed-use developments. Accor One Living will support the development and operation of branded residences, anchored by managed and franchised Accor hotels and resorts, and other unique products that add value to mixed-use projects, such as co-working offerings, extended-stay hotels, private clubs and more. Accor One Living consolidates Accor’s leadership in the branded residences category. Currently, the Group has more than 135 branded residences projects operating or in development, across 22 distinct brands. Looking ahead, Accor One Living expects to open more than 125 new branded residence communities over the next several years. One of the key differentiators for Accor One Living is its delivery of end-to-end solutions for its hospitality and real estate investment partners. Beginning with the planning phase, Accor One Living works with its partners to ensure design, services and benefits are customized to meet the needs of targeted homebuyers, to the operating phase where Accor One Living will continue to provide essential support, promising to make hotels more profitable for investment partners. 

CBRE arranged the sale of a 65-property, 7,865-key hotel portfolio located across 27 states. Service Properties Trust sold the portfolio to 21 separate buyers for a total consideration of approximately $514 million. CBRE Hotels’ Capital Markets Institutional Group represented the seller in each transaction. The list of buyers includes mostly family offices and some private equity firms. The portfolio is comprised of 14 Sonesta Simply Suites, 32 Sonesta ES Suites, and 19 Sonesta Select hotels. 

Huff, Niehaus & Associates, Inc announced the sale of the Best Western Plus Brandywine Inn & Suites in Monticello, Indiana. The complex contains the 59-room hotel, the Brandywine Reception & Meeting Center and the Sculptures Sports & Fitness Center. Amenities include a fitness center, tennis/pickle ball courts, indoor basketball/volleyball court, ballroom and large meeting and reception center. Huff, Niehaus & Associates, Inc. represented the Seller, Brandywine Complex, Inc., and assisted with the Purchaser in the transaction. The property sold for $5,750,000 with an automatic transfer of the Best Western Plus brand to an investment group.

Crystal Investment Property, LLC announced the sale of the Eagle’s View Inn & Suites in Enterprise, Oregon. CIP represented the seller in the transaction. The final sale price remains confidential. The Eagle’s View Inn & Suites is a 53-key, midscale, select-service, independent hotel with 930 square feet of meeting room/event space, an exercise rooms, indoor pool, spa, sauna and guest laundry.

Meliá Hotels International and its joint venture partner Falcon’s Beyond announced the opening of Falcon’s Resort by Meliá| All Suites Punta Cana. It is the first resort to open under the new leisure and entertainment-based brand, Falcon’s Resorts by Meliá that offers a unique preordainment hospitality experience. Falcon’s Resort by Meliá | All Suites Punta Cana, located on the Dominican Republic’s Bávaro Beach, is a multi-phase transformation of two existing Meliá properties, Paradisus Grand Cana and Garden Suites by Meliá, comprising 622 rooms. Phase one, has re-branded Paradisus Grand Cana and includes 432 luxury suites, three pools, nine specialty restaurants, and a spa & fitness center. Phase two, the re-brand of Garden Suites by Meliá, will include 190 rooms, to be completed by late 2023. Falcon’s Resort by Meliá | All Suites Punta Cana is one component of a new $350 million entertainment destination called Falcon’s Beyond Destinations that will feature three distinct guest experiences: the resort, a new theme park and a retail, dining, and entertainment district called Falcon’s Central. Meliá and Falcon’s will develop multiple Falcon’s Beyond Destination locations across the globe in the upcoming years, including sites in Tenerife, Canary Islands, and Mexico. 

MARAEY signed an agreement with Marriott International, Inc. to build three distinct hotels in Maricá, Rio de Janeiro. The three-hotel complex is anticipated to mark the introduction of the exclusive Ritz-Carlton Reserve brand to Brazil and South America. In addition, the planned JW Marriott is expected to be one of the brand’s first all-inclusive hotels in the world, as well as the innovative Rock in Rio, Autograph Collection, the first hotel with the festival’s brand. The three hotels are expected to have more than 1,100 rooms. The estimated MARAEY investment is approximately US$360 million. Construction of the properties is expected to begin in the second half of 2023.

Europe Highlights

Meliá Hotels International and Tyrus Capital, the owners of the hotel and its key investor, are announcing a long-term agreement by which Meliá will manage the former Rey Juan Carlos Hotel in Barcelona. The hotel will be operated under the luxury Gran Meliá brand with the name Mirande de Pedralbes. Tyrus Capital has entrusted Meliá Hotels International to manage the hotel and the Congress Centre attached to it, and to elevate it to a new phase of success, after having been closed since the suspension of its operations in 2020. The Miranda de Pedralbes, a Gran Meliá Hotel, and the adjoining Congress Centre will reopen in the coming months on completion of the renovation and enhancement of guest rooms and public areas, and the addition of new leisure and dining facilities, actions planned by the property owners and new management team to enhance the customer experience and to maximize the excellence and sustainability of the operations of both the hotel and the Congress Centre.