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1. KSL Capital Partners buys Westin Hilton Head Island Resort & Spa
Investment firm KSL Capital Partners has acquired the 420-key Westin Hilton Head Island Resort & Spa for an undisclosed amount, according to a news release. The property has undergone $47 million in renovations since 2012.
CoStar data shows the property last transacted in 2012 through a two-property bankruptcy deal alongside the 487-key Westin La Paloma Resort & Spa in Phoenix for a total purchase price of $245.8 million, which included the assumption of existing debt. The price attached to the then 412-key Westin Hilton Head property in the deal was $36.74 million. Southwest Value Partners is listed as the buyer and Transwest Properties was the seller.
In 2007, the property sold in another two-property deal with the Westin La Paloma for a combined price of $310 million. The Westin Hilton Head was appraised at $129.6 million at the time with Transwest Properties listed as the buyer and Starwood Capital Group as the seller.
2. Sunstone closes on $1.35 billion amended credit agreement
Hotel real estate investment trust Sunstone Hotel Investors entered into a third amended and restated credit agreement that has a total borrowing capacity of $1.35 billion. The agreement will take care of its near-term maturities, extend the duration of its remaining loans and help its balance sheet, according to a news release.
The new agreement includes a $500 million revolving credit facility with an initial maturity of September 2029, a $275 million delayed-draw term loan facility with an initial maturity in January 2029, a $275 million term loan facility with an initial maturity in January 2030 and a $300 million term loan facility due January 2031. The revolving credit facility's maturity can be extended to September 2030, and the two $275 million term loan facilities can be extended to January 2031.
Sunstone used the proceeds from incremental borrowing on the new term loans to consolidate its prior four term loans into three and fully repay the outstanding balance on its revolving credit facility. It's also delaying the draw of up to $90 million under the $275 million delayed-draw term loan facility until January 2026, from which it expects to use a majority of the proceeds to repay the Series A Senior Notes at their scheduled maturity. After this, it won't have any debt maturities until 2028.
3. A less-than-thrilling summer for hotels near theme parks
Spending overall at U.S. theme parks this summer is down, giving the hotels near regional theme parks a bit of a bumpy ride, CoStar News Hotels reports. Lower- and middle-income earners are being more careful how they spend, but destination parks that attract wealthier guests are coasting along.
Hersheypark in Hershey, Pennsylvania, can usually draw in enough overnight guests to cause compression in the market over the summer months, said Elias Thompson, regional vice president of operations at Shaner Hotel Group. This year, however, Shaner has noticed fewer bookings in the summer months as well as more specials discounting prices to boost ticket sales at the park.
“We have seen that a little bit this year, which makes us think that they're also feeling the pinch a little bit,” he said. “But I can definitely tell you, with the hotels in our entire market, I speak to a lot of the [general managers], a lot of the different companies that are based in Hershey market, and we're all feeling it. There's definitely been a lot less travel into the market during this park season.”
4. White House warns of permanent firings if shutdown occurs
With a government shutdown looming, the White House budget office is telling federal agencies to make plans for permanent firings if Congress does not approve another round of temporary funding by Sept. 30, the Wall Street Journal reports. The Republican proposal approved narrowly in the House would provide funding for another seven weeks, but Democrats in the Senate want an extension on enhanced Affordable Care Act subsidies as well as restoration of Medicaid funding that was cut under the tax law passed over the summer.
Office of Management and Budget Director Russ Vought sent a memo to federal agencies instructing them to make permanent reduction-in-force plans for employees in programs without current funding and no outside funding source as well as those inconsistent with President Donald Trump's priorities. These cuts would be in addition to any temporary furloughs that happen during government shutdowns.
5. EU countries to begin scanning travelers' fingerprints
The European Union is moving forward with its new Entry/Exit System for all visitors coming from outside of Europe's Schengen Area, and one of those provisions will be to scan fingerprints at arrival, CBS News reports. The new system will roll out over a six-month period starting Oct. 12 with the goal of eventually replacing passport stamps.
"U.S. citizens traveling to most European countries should expect new automated border checks and to have their biodata digitally collected upon arrival and departure," the State Department said in a social media post.
Those who refuse to provide biometric data will be denied entry, according to the article.