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1. Dubai's Five Holdings Seeks IPO
Five Holdings, a Dubai-based real estate group with hospitality division Five Hotels & Resorts, is concerned about tensions in the Middle East escalating but the company continues to grow despite a drop in customers from Israel, Reuters reports.
Founder and chairman Kabir Mulchandani told the news outlet his company is working toward an initial public offering in 2025. Five Holdings also is rolling out a stock-based compensation plan to reward its top employees. It has 155,000 hotel rooms in Dubai.
"Mulchandani said the company, which estimates it could be worth $2.5 billion to $3 billion, is planning to list in Dubai and is in talks with advisers about a potential dual listing, without elaborating on specific locations. Dubai was quick to reopen after the pandemic. That, along with an influx of Russians and business professionals as well as relaxed social and visa rules, helped fuel an economic recovery that has also seen property prices and rents balloon," the news outlet reports.
2. IHG Partners With Novum Hospitality
IHG Hotels & Resorts and German hotel operator Novum Hospitality formed a long-term agreement that is set to double IHG's presence in Germany through a collaboration and debut of brands, HNN reports.
Novum's flagship upper midscale brand The Niu and IHG's Holiday Inn will form Holiday Inn - The Niu. IHG will also debut its Garner and Candlewood Suites brands in Germany. In total, IHG expects its presence in Germany will grow to more than 200 hotels across 100 cities.
“Partnering with IHG ... equips our family-run business with the firepower needed to fortify our market presence across Europe," David Etmenan, owner of Novum, said in a news release.
3. Hotel Leaders Express Optimism at Berlin Meeting
Executives meeting in Berlin this week for the 2024 International Hotel Investment Forum say there are more reasons for optimism than pessimism across Europe despite central banks around the world delaying plans to cut rates.
"A growing global middle class, along with the increasing likelihood of Chinese travelers once again traveling abroad, could represent a huge opportunity for desirable locations across Europe, and leisure spending remains strong across the board. So even in an election year, people should feel good about the prospects of European travel," HNN's Sean McCracken reports from Berlin.
4. Partners Group Takes Minority Stake in Trinity
Global private markets firm Partners Group agreed to acquire a minority stake in hospitality real estate investor Trinity Investments to support growth opportunities. Partners Group will first target a $500 million investment in the U.S. with Trinity, reports HNN's Bryan Wroten.
“We are investing in real estate operating companies in order to gain vertical depth in sectors and geographies where we have strong thematic conviction," said Jason Longo, member of management, Real Estate Americas, Partners Group."Trinity has nearly three decades of experience in the hotel real estate asset class and that depth of knowledge shines through.”
5. Medical Tourism on the Rise
Medical tourism, defined as people traveling abroad for affordable procedures such as dental implants, plastic surgery, fertility assistance and cancer treatment, is growing by 15% to 25% per year and is currently estimated to be a $92 billion industry, Deseret News reports. The question of whether medical tourism is a "boon for the marketplace, or a symptom of something rotten," remains.
"Some patients travel for personal reasons, like getting access to cutting-edge treatments or privacy for elective procedures like cosmetic surgery. ... Others may travel for treatments that aren’t approved or allowed in the U.S., like stem cell therapy or other experimental procedures," the news outlet reports.