MGM China Holdings Limited priced its offering of 760 million shares of MGM China at HK$15.34, or approximately US$1.97 per share. The deal represents net proceeds of HK$11.1 billion, or approximately US$1.4 billion, according to a U.S. Securities and Exchange Commission filing.
The offering is expected to close 3 June. Net proceeds will be used to repay obligations to Grand Paradise Macau Limited as part of the reorganization of its shareholding structure.
From a transactions perspective, Spain’s hotel industry remains anemic, reports HotelNewsNow.com contributor Ben Jones.
“Banks are not financing new deals,” said Miguel Vázquez, director for hotels and resorts at Spanish hospitality consultant IREA. “Outside of distress sales and specific sale and leaseback deals by top hotel operators, there won’t be much activity.”
Last year, 17 hotel transactions worth €515 million (US$729.2 million) took place. Those involved 20 properties totaling 3,485 rooms. This was a 35% drop in value from 2009 and roughly the same amount as a decade ago, the last time the Spanish industry suffered a recession.
China-based Home Inns & Hotel Management is acquiring Motel 168 International Holdings Limited for US$470 million.
Motel 168’s portfolio includes 144 leased-and-operated properties and 137 franchised-and-managed hotels, representing a total of 45,669 rooms in China. Home Inns will retain the Motel 168 brand.
"We are excited to have the opportunity to bring Motel 168, a well-established domestic economy hotel chain, into Home Inns' portfolio, and look forward to working with the Motel 168 management team to ensure timely closing of the transaction, smooth post closing integration, and future growth of the business," Home Inns CEO David Sun said in a news release. "We are confident that through this transaction, we will create long term value for our shareholders, who will include funds managed by Morgan Stanley Real Estate Investing (MSREI) and other previous shareholders of Motel 168."
- Read “Home Inns acquiring Motel 168.”
In an interview Thursday with CNBC, Marriott International president Arne Sorenson said there is reason to be optimistic about the state of the hotel sector.
As an example, he said business and leisure travel is picking up at all Marriott brands.
"We're still building. Obviously you don't turn around overnight," he said. "There's still some distance before we get back to the levels we were in 2007 but we can see it in sight."
Pebblebrook Hotel Trust late Thursday afternoon announced it acquired the 148-room Viceroy Miami for US$36.5 million. The deal marks Pebblebrook’s 13th acquisition since its initial public offering and more than US$1 billion in invested capital.
“We are pleased to be acquiring the Viceroy Miami at an extremely attractive price and furthering the geographic diversification of our growing portfolio,” said Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust. “Miami has historically performed very well in recovery cycles and the distinctive quality and location of the Viceroy Miami creates a very strong investment opportunity for our company.”
- Read “Pebblebrook buys Miami Viceroy.”
Compiled by Shawn A. Turner.