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1. Pimco Fund Surrenders 20-Hotel Portfolio with $240 Million Debt
A Pacific Investment Management Co. real estate fund has surrendered a portfolio of 20 hotels with $240 million in debt, Bloomberg reports, citing commentary filed by the loan's servicer. The 10-year-old Pimco fund held a 99% stake in the joint venture that owned the hotels along with a limited liability company connected with hotel operator Steven Angel.
Pimco and Angel did not respond to Bloomberg's request for comment.
The hotels were valued at $326 million when the debt originated in 2017, but that valuation was cut to $272.8 million in a December appraisal, according to the article. Earlier this year, Pimco defaulted on a portfolio of office buildings with $1.7 billion, but it is in ongoing negotiations with lenders.
2. Trinity Refinances Grande Lakes Orlando Resort
The joint venture led by Trinity Investments has arranged a $750 million refinancing of its $650 million loan for the Grande Lakes Orlando Resort, HNN's Trevor Simpson reports. It is a 409-acre resort with a 582-key Ritz-Carlton hotel, a 1,010-key JW Marriott hotel and an 18-hole golf course.
The joint venture bought the resort in 2018 and invested in a $118 million renovation and repositioning. The project added 12 guestrooms, improved food and beverage experiences and reimagined the pool area, which now includes a waterpark.
“Since acquiring Grande Lakes, we’ve completed a transformation of the resort, making it a go-to destination for both individuals and group travel in Orlando, and Florida more broadly,” said Sean Hehir, managing partner, president, and CEO of Trinity. “Our ability to refinance the asset at attractive terms in today’s market is a testament to our ability to revitalize the resort for a new generation of travelers and position the asset for continued operational outperformance. We are grateful to our financial partners for their continued support of the business.”
3. Israel's Hotels Shelter Those Fleeing War
With millions displaced by the conflict between Israel and Hamas, hotels in Israel have been taking in evacuees and serving other relief efforts as well, reports HNN's Terence Baker.
“Three years of the coronavirus pandemic assisted hotels here to be very nimble and flexible to emergency situations," said Joseph Fischer, owner of Tel Aviv-based business consultancy Vision Hospitality & Travel. "Hotels are housing many employees, those not called up among the 360,000 reservists. The hotels that remain open are operating on skeleton crews,” he said.
4. AAHOA Worried About Proposed Choice, Wyndham Deal
Members of the Asian American Hotel Owners Association are concerned about how Choice Hotels International's attempts to acquire Wyndham Hotels & Resorts will affect franchisees, reports HNN's Dana Miller.
“As the owners of more than two-thirds of both Choice Hotels and Wyndham-branded hotels, AAHOA members have much at stake with Choice’s potential purchase of Wyndham,” AAHOA Chairman Bharat Patel said in the statement. “To have one franchisor, Choice Hotels, control so many economy and limited-service hotels will give our members little opportunity to have a say in whether the franchise mandates and requirements are fair, and significantly limit their options to find a different brand under which they could successfully operate their hotels.”
Wyndham Hotels & Resorts' board of directors has rejected multiple offers from Choice, most recently yesterday.
5. Flight Delays Upset Business Travel Recovery
The elevated number of flight delays is changing the business travel landscape, the Wall Street Journal reports. More than 22% of flights to or from the U.S. were delayed during the first nine months of 2023, up 17% from the same period in 2019.
A survey conducted by the U.S. Travel Association found that a third of business travelers are taking fewer trips than before 2020, according to the article. These travelers said they would take an average of two more trips a year if problems with flights improved.
“If your daughter is expecting to go to Disney World, you’re going to Disney World. You’ll put up with the delays and the trouble,” U.S. Travel Association CEO Geoff Freeman said. “The business traveler is the first to say, ‘I’m not putting up with the hassle.’ ”