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1. Future of Paris’ Hermitage Plaza in Doubt
The future of Paris’ much-touted Hermitage Plaza development, which included plans for a luxury hotel, is looking more in doubt, reports Luc-Étienne Rouillard Lafond at BusinessImmo.
The project was designed by Sir Norman Foster and has been in development for more than a decade. It includes twin towers containing penthouses, restaurants, bars, offices, luxury shopping, an auditorium and an art gallery.
Developer Hermitage Group recently began early stages of preparation and has a works permit not expiring until May 2026.
But, according to Rouillard Lafond, the board of directors at Paris La Défense, the landlord and development's business district agreed not to "approve the draft commitment to sell for this project, which seemed to sound the death knell for the project."
"It also appears that the major investor in the project comes from Russia, which in the current environment, vastly complicates matters," he writes.
2. Jamaica Wildfires Threaten Negril Resorts
A wildfire in Jamaica is affecting resorts in Negril, one of the country’s most popular tourism destinations. The blaze started on Feb. 21, but so far there have been no evacuations or closures, The Jamaica Observer reports. Electricity has been lost from the area and smoke from the fire has blanketed parts of the region.
Elaine Allen-Bradley, president of the Negril Chamber of Commerce, told the newspaper that the “resort town is currently under severe pressure.” She suggested the area is prone to wildfires because sufficient capital has not been spent on managing the area.
3. Saudi Arabia Shuts Down, Fines Hotels Operating Without Licenses
Saudi Arabia’s Ministry of Tourism is continuing its campaign to close down hotels that it claims are operating without the required licenses.
Such a breach is "punishable by shutdown or a fine of 1 million Saudi riyals ($266,420) or, in some cases, both penalties," according to newspaper Gulf Times, which added the latest crackdown resulted in 59 hotels being closed.
In total, the government agency said 1,251 different violations have been detected as part of its “Our Guests Top Priorities” campaign.
The country is undergoing an ambitious tourism development campaign, Vision2030, which includes giga-projects such as NEOM, Diriyah Gate and the Red Sea Global that are expected to draw 150 million annual visitors.
4. Pebblebrook Trust CEO Frets Over Economic Doldrums
Executives at real estate investment trust Pebblebrook Hotel Trust said the challenges of the U.S. economy add to softening overall hotel demand, with most of that occurring in the middle to lower segments, Hotel News Now’s Bryan Wroten reports.
During the firm’s full-year 2023 earnings call, Chairman and CEO Jon Bortz said amid lingering concerns over inflation, total industry demand has not exceeded supply growth since March 2023 and has been negative for seven out of the past 10 months.
5. Juniper Hotels Ends Subscriptions Ahead of Listing
Indian hotel firm Juniper Hotels, which has seven hotels and 1,836 rooms operated by Hyatt Hotels Corp., has finalized its last of three days of seeking subscriptions before it launches as a publicly listed company on Feb. 28, according to IPO Watch. Two Seas Holdings is the firm’s majority shareholder, with 50%, while developer Saraf Hotels owns 44.68%.
IPO Watch said Juniper seeks to raise approximately 1800 Indian crores ($217 million). The initial public offering comes on the heels of the listing of another Indian hotel firm. On Feb. 12, Park Hotels went public, with its executives stating the listing will help pay off 100% of debt and help open 15 additional hotels.