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1. Starwood Capital Buys 10 London Hotels
Starwood Capital Group has agreed to buy 10 hotels in London from Edwardian Hotels, according to an announcement from Edwardian. The portfolio includes 10 Radisson Blu properties, and Bloomberg reports the price tag came in a roughly £800 million ($1.02 billion).
HNN's Terence Baker reports the deal allows Edwardian to focus on the three properties the firm views as its crown jewels — the 350-room The Londoner, on Leicester Square, which opened in 2021; the 404-room The May Fair, tucked behind Piccadilly, which opened in 1927; and one non-London hotel, the 263-room Edwardian Manchester, which opened in 1853.
2. Wyndham Says FTC Review Getting More Stringent
Executives at Wyndham Hotels & Resorts have received a second request from the Federal Trade Commission, indicating a deeper and longer review of Choice Hotels International's intended — but thus far unwanted — merger between the two hotel branding companies.
"The Second Request, which is issued in only around 1% of deals reviewed by the FTC, marks the start of a complex, lengthy process as both parties provide the FTC with the terabytes of data and documents it has requested, with an uncertain outcome and no guarantee of closing. Despite the distraction, the Board and management team will continue to execute Wyndham's stand-alone strategy with a focus on providing shareholders with long-term, sustainable value."
Choice is offering a $90 per share combination of cash and stock to purchase Wyndham.
3. Fort Worth Hotel Explosion Investigation Could Linger
The Dallas Morning News reports the investigation into the cause of an explosion at the Sandman Signature Hotel in downtown Fort Worth could be lengthy.
"The fire department winded down its physical presence at the site by Tuesday evening, but the investigation into the cause of the blast is still ongoing, Craig Trojacek, a Fort Worth Fire Department spokesman, told the Dallas Morning News. No cause has been determined; he said investigators must pore through evidence and conduct interviews, so there’s no timetable for the investigation’s completion," the newspaper reports.
In total, 21 people were hurt in the explosion, and four are considered in serious condition.
4. Scarlett, Everwood Announce Merger
Scarlett Hotel Group and Everwood Hospitality Partners have announced plans for the two hotel management and investment firms to merge. The combined company will have a combined portfolio of 17 hotels with 2,534 rooms across the U.S.
“We’re thrilled to expand our reach in the hospitality industry by merging with Everwood,” Scarlett principal Zio Pekovic said in a news release. “Our two companies have incredibly compatible outlooks on the investment process. Together, we have more power to fuel growth for the properties we purchase and manage. This strategic realignment will also allow the combined companies to maximize their individual strengths and pursue new opportunities for growth.”
5. Aimbridge Announces Union Deal for Six California Hotels
Aimbridge Hospitality has announced a new deal with Unite Here Local 11 covering employees at six Southern California hotels. The hotel operator notes the new deal includes "non-tipped wage increase of up to $10 per hour, as well as continued contributions to healthcare and retirement."
The hotels covered by the agreements are the DoubleTree by Hilton Hotel Los Angeles Downtown, the DoubleTree by Hilton Hotel San Pedro — Port of Los Angeles, the Hilton Pasadena, the Hyatt Regency LAX, the Holiday Inn Los Angeles — LAX Airport and the Sheraton Park Hotel at the Anaheim Resort.