HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s compilation covers the Americas.
Summit converts five hotels to AmericInn brand
AmericInn will add five franchised locations owned by Summit Hotel Properties of Sioux Falls, South Dakota. The properties, all formerly branded as Comfort Inn and Comfort Suites, are managed by Interstate Hotels & Resorts. The hotels are located in Salina, Kansas; Missoula, Montana; Twin Falls, Idaho; Fort Smith, Arkansas; and Golden, Colorado.
Dan Hansen, president and CEO of Summit, said the decision to franchise with AmericInn was based on the strong value proposition of the brand, its scale, its commitment to growing revenue per available room, and the comprehensive support provided to the Summit organization. Summit is a publicly traded real-estate investment trust that owns 66 hotels in 19 states across the country, focusing exclusively on premium-branded, limited-service and select-services hotels. Interstate Hotels & Resorts owns and manages more than 62,000 rooms in 39 states.
JLLH to capitalize on hotel investment opportunities in Buenos Aires
The upswing in economic fundamentals in Buenos Aires has spurred numerous hotel investment opportunities, according to Jones Lang LaSalle Hotels. Both domestic and foreign investors are looking to become active in this vital market, the company said.
Argentina’s economic growth is resurging. While a challenging business environment and uncertain outlook persist, the city’s reputation as the Paris of South America, relative accessibility and attractive exchange rates help Buenos Aires retain its status as one of South America’s preeminent tourist destinations. Buenos Aires is also Argentina’s principal business, commercial, cultural and financial hub. Visitation trends and hotel fundamentals rebounded strongly in 2010 and investors continue to seek investments across various hotel sectors and locations in and around the city.
While the market is well-served in terms of luxury properties, it has limited representation of upscale branded select-service hotels, JLLH reported. As evidenced by the robust recent entrance of Accor’s Novotel and Ibis hotels, this presents a potential area of investment opportunity.
In related news, JLLH will expand its dedicated commercial real-estate offerings in Buenos Aires to include hotel operations. The company is opening its second office in Latin America in Buenos Aires, with the hiring of Juan Paredes. Paredes will focus on Argentina, Chile, Colombia, Peru, Paraguay and Uruguay and will lead the company’s new regional hotel outpost. Paredes will partner with Shannon Robertson, managing director of JLLH’s regional Latin America operation to serve the company’s current and prospective client base.
Accor expands Olivier Poirot’s role
Accor North America has changed its leadership structure. Olivier Poirot, CEO of Accor North America, Motel 6 and Studio6, will assume responsibility for the Novotel network in Canada and for Accor operations in Mexico, in addition to continuing his leadership of the Motel 6 and Studio 6 brands in the United States and Canada. Poirot also has been appointed a member of Accor’s Worldwide Management Committee.
Poirot’s additional responsibilities will follow the departure of Michael Flaxman in June 2011 as COO of Accor Americas. Flaxman leaves Accor after 27 years with the company. Poirot assumes his expanded role following a three-year business transformation initiative that he led within the Motel 6 network, aimed at refocusing on the company’s core North American activity.
Details on Revel in Atlantic City revealed
Revel, a US$2.4-billion gambling resort, is expected to be the last megaresort built in the slumping Atlantic City market for years to come. The property itself was in peril until the developers secured US$1.15 billion in new financing in February to restart a project that had been stalled by money shortages.
The resort will embrace the ocean and beaches, as opposed to other Boardwalk casinos that are oriented toward the land side of town.
JRK Hotel Group adds management component
JRK Hotel Group, which offers services in revenue management, sales and customer service with properties located in New York City, Los Angeles, Santa Barbara and Nashville, is evolving its platform to include third-party management contracts. The hotel group is now seeking to manage additional flagged or independent properties to add to its current collection, which includes: Oceana Santa Monica and Santa Barbara, Hotel Roger Williams in New York and the nation’s largest Holiday Inn Express in Downtown Nashville. In October 2010, JRK took on their first management deal when they retained management during the sale of Hotel Roger Williams to LaSalle Property Holdings.
While JRK’s mission is to grow hotel management deals, the group will continue to focus on acquisitions or joint ventures in the top 25 hotel markets.
Marriott opens first Courtyard in Mexico City
The first Courtyard by Marriott hotel in Mexico City will open in 2012. The 292-room Courtyard Mexico City Airport located directly across from international terminal No. 1 at Benito Juarez International Airport is owned by Peñon S.A. de C.V.
Marriott International operates 18 hotels in Mexico under five different brands: Marriott Hotels & Resorts, JW Marriott Hotels, The Ritz-Carlton, Courtyard by Marriott and Fairfield Inn. The Courtyard Mexico City Airport will be the seventh Courtyard to open in Mexico; four more Courtyards are in the pipeline.
Vancouver adds Element hotel to green landscape
Greater Vancouver will become the site of Canada’s first Element, a hotel brand by Starwood Hotels & Resorts Worldwide focused on eco-conscious hospitality. Element Vancouver Metrotown, owned by Bosa Properties and managed by Atlific Hotels, will welcome guests in 2014.
When it launched in 2008, Element became the first major hotel brand to mandate all its properties pursue LEED certification. There are now nine Element hotels across North America. The new-build construction will be the tallest tower in Burnaby, with 169 guestrooms and suites.
IHG names new VP for Latin America and Caribbean
InterContinental Hotels Group named Ricardo Lopez to VP of sales and marketing for the Latin America & Caribbean region.
Lopez, a senior executive at IHG since 2005, will oversee all aspects of sales, marketing and revenue management for the region’s 75 hotels. He also will serve as the liaison between the International Association of Holiday Inns and the region’s sales and marketing team. Prior to joining IHG, Lopez served in several capacities within Grupo TACA, where he was a key member of the team responsible for the positive transformation of the company’s revenue performance.
Noteworthy deals and openings
• The 1,190-room Hilton San Diego Bayfront was sold to Sunstone Hotel Investors for US$475 million by ING Clarion.
• The 237-room Mondrian Los Angeles was sold to an affiliate of Pebblebrook Hotel Trust for US$137 million by Morgans Hotel Group Company.
• The 417-room Royal Palm in Miami Beach, Florida, was sold to KSL Capital Partners for US$130 million by Sunstone.
• The 134-room Hampton Inn & Suites Chattanooga/Downtown in Chattanooga, Tennessee—owned and managed by Vision Hospitality Group—opened.
• The 104-room TownePlace Suites Providence North Kingstown in North Kingstown, Rhode Island—owned by S & S Hotels and Suites and managed by Colwen Hotel Management—opened.