April 13 (Bloomberg) -- Starwood Hotels & Resorts Worldwide Inc. agreed to sell two of its W Hotels in Manhattan to St. Giles Hotels LLC, reducing the luxury brand’s current New York area locations by a third.
St. Giles, based in London, will take over operations of the W Court and the W Tuscany as of 11:59 p.m. New York time tomorrow, according to a notification on Starwood’s Web site. The hotels, both on 39th Street between Park and Lexington avenues, will no longer be affiliated with the W, White Plains, New York-based Starwood said in a separate statement.
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Tuesday, April 13, 2010
David Michels joins the board of the Savoy hotel's holding company
Former Hilton Group chief executive Sir David Michels is believed to have joined the board of the Savoy hotel’s holding company.
Sir David’s appointment has been made as the hotel, which closed in December 2007 for refurbishment, confirmed that the reopening of the five-star, 268-bedroom property has been delayed again until September.
“There is no one reason for the delay, but once work started on the property the building was found to be in a far worst state than was previously expected,” said a hotel spokesman.
The cost of the refurbishment has now far exceeded the original budget of £100m
Sir David’s appointment has been made as the hotel, which closed in December 2007 for refurbishment, confirmed that the reopening of the five-star, 268-bedroom property has been delayed again until September.
“There is no one reason for the delay, but once work started on the property the building was found to be in a far worst state than was previously expected,” said a hotel spokesman.
The cost of the refurbishment has now far exceeded the original budget of £100m
Foreclosures Reveal Red Roof Inn Distress
Over the past two weeks, three separate foreclosure lawsuits have been filed on behalf of bondholders against properties owned by Red Roof Inns, clouding the future of one of the leading players in the lodging industry’s economy segment.
A foreclosure suit was filed in late March against one of Red Roof’s highest-profile locations in downtown Chicago. A week later, two properties in South Florida were hit with similar suits. The properties are parts of national portfolios of company-owned Red Roof Inn hotels used to securitize multiple loans now in default
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A foreclosure suit was filed in late March against one of Red Roof’s highest-profile locations in downtown Chicago. A week later, two properties in South Florida were hit with similar suits. The properties are parts of national portfolios of company-owned Red Roof Inn hotels used to securitize multiple loans now in default
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Fairmont Raffles IPO in the cards
Four years after being taken private in a $3.3-billion buyout, the iconic Fairmont hotel chain is on its way back to public ownership.
Saudi billionaire Prince Al-Waleed bin Talal sold a stake in Fairmont Raffles Holding International on Monday, and used the deal to announce (on Bloomberg Television) that the company will go public again in two to three years.
Fairmont Raffles, once part of the Canadian Pacific conglomerate, manages the railway hotels that dominate downtowns in major Canadian cities, including Vancouver, Edmonton, Calgary, Toronto and Montreal. The chain was purchased in 2006, a year that saw a raft of private equity takeovers that also included a buyout of Four Seasons Hotels Inc.
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Saudi billionaire Prince Al-Waleed bin Talal sold a stake in Fairmont Raffles Holding International on Monday, and used the deal to announce (on Bloomberg Television) that the company will go public again in two to three years.
Fairmont Raffles, once part of the Canadian Pacific conglomerate, manages the railway hotels that dominate downtowns in major Canadian cities, including Vancouver, Edmonton, Calgary, Toronto and Montreal. The chain was purchased in 2006, a year that saw a raft of private equity takeovers that also included a buyout of Four Seasons Hotels Inc.
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Pets on planes: More owners smuggling them aboard
There's an unwritten rule in travel journalism that any story about pets on planes must contain at least one Chihuahua anecdote. I know, because I've written many of them. So let's get right to Robin Boggs and her travel companion, Cricket.
Boggs, a consultant in Atlanta, frequently packs her nine-pound dog in her carry-on luggage. But like an increasing number of travelers, she doesn't tell anyone. She's been caught twice, and the airline has forced her to pay a $150 surcharge for the pet.
"When I asked why I had to pay a fee in order to stuff my dog under the seat in front of me, I was told it was their policy," she said. "I concluded that it's really just a ploy to charge another fee."
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Boggs, a consultant in Atlanta, frequently packs her nine-pound dog in her carry-on luggage. But like an increasing number of travelers, she doesn't tell anyone. She's been caught twice, and the airline has forced her to pay a $150 surcharge for the pet.
"When I asked why I had to pay a fee in order to stuff my dog under the seat in front of me, I was told it was their policy," she said. "I concluded that it's really just a ploy to charge another fee."
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Robbers hit W Hotel in Midtown Atalnta
Two employees were counting money in an office around 12:30 a.m. when two gunmen entered, threw down a black bag and demanded all the cash, police said.
"They gave the males all the money that was sitting on the table and in the safe under the table and gave the bag back to them," police spokesman Officer James Polite said.
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"They gave the males all the money that was sitting on the table and in the safe under the table and gave the bag back to them," police spokesman Officer James Polite said.
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China partner seizes joint venture with hotel group Millennium
Millennium & Copthorne Hotels' operations in China have turned sour, after a joint venture partner seized control of the business, sold off assets and sacked employees.
The group released a statement yesterday saying it had encountered "certain difficulties" at its joint venture Idea Valley Investment Holdings.
It called on the Chinese authorities to step in after Cheung Ping Kwong, one of its partners, took control of the venture by "deceit". The company also accused him of using intimidation tactics to sell off a resort hotel on the west coast.
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The group released a statement yesterday saying it had encountered "certain difficulties" at its joint venture Idea Valley Investment Holdings.
It called on the Chinese authorities to step in after Cheung Ping Kwong, one of its partners, took control of the venture by "deceit". The company also accused him of using intimidation tactics to sell off a resort hotel on the west coast.
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STR: US hotel pipeline for March 2010
HENDERSONVILLE, Tennessee—The total active U.S. hotel development pipeline includes 3,399 projects comprising 354,538 rooms, according to the March 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 35.7-percent decrease in the number of rooms in the total active pipeline compared to March 2009. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage
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STR: Canada hotel pipeline for March 2010
HENDERSONVILLE, Tennessee—The Canadian hotel development pipeline includes 202 projects comprising 21,538 rooms, according to the March 2010 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 2.5-percent decrease in the number of rooms in the pipeline compared to February 2010 and a 16.5-percent decrease in the number of rooms in the pipeline compared to March 2009.
Among the provinces, Ontario reported the most rooms in the total active pipeline, ending the month with 10,105 rooms, followed by Alberta (4,179 rooms) and British Columbia (2,933 rooms).
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Among the provinces, Ontario reported the most rooms in the total active pipeline, ending the month with 10,105 rooms, followed by Alberta (4,179 rooms) and British Columbia (2,933 rooms).
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106 Bay Area hotels in default
More than 100 hotels in the Bay Area are now suffering from problem mortgages, according to a new report that sketches ongoing woes for the lodging industry.
During the first quarter of 2010, an estimated 106 Bay Area hotels were either in foreclosure or default on their mortgages in the first quarter, Atlas Hospitality Group reported.
That was up 10.4 percent from the 96 hotels in the nine-county region that struggled with mortgage delinquencies in the 2009 fourth quarter, the October-December period.
"This problem is definitely going to continue," said Alan Reay, president of Atlas Hospitality. "We are still seeing declines in room revenue. That is having a major impact on the ability of hotel owners to pay off their mortgages."
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During the first quarter of 2010, an estimated 106 Bay Area hotels were either in foreclosure or default on their mortgages in the first quarter, Atlas Hospitality Group reported.
That was up 10.4 percent from the 96 hotels in the nine-county region that struggled with mortgage delinquencies in the 2009 fourth quarter, the October-December period.
"This problem is definitely going to continue," said Alan Reay, president of Atlas Hospitality. "We are still seeing declines in room revenue. That is having a major impact on the ability of hotel owners to pay off their mortgages."
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Dominos continue to fall in Artisan Hotel saga
It's curtains for another Artisan hotel, this one in El Paso, Texas. That could mean millions of dollars lost by Las Vegas investors.
Contact 13 Chief Investigator Darcy Spears has learned there are up to 50 local investors who stand to lose more than $5 million if the Texas property shuts down for good.
The official reason the Artisan El Paso is closed is that the gas was shut off to the bankrupt property because they couldn't pay the bill.
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Contact 13 Chief Investigator Darcy Spears has learned there are up to 50 local investors who stand to lose more than $5 million if the Texas property shuts down for good.
The official reason the Artisan El Paso is closed is that the gas was shut off to the bankrupt property because they couldn't pay the bill.
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Extended Stay Favors New Centerbridge Purchase Offer
April 8 (Bloomberg) -- Extended Stay Hotels Inc. favors a new purchase offer by Centerbridge Partners LP as an improvement over one by Starwood Capital Group LLC, a lawyer for the bankrupt hotel chain said.
Centerbridge, a New York private-equity firm, and Paulson & Co., a New York asset manager, matched Starwood’s offer to invest as much as $905.4 million in the company and eliminated fees Starwood required, said Marcia L. Goldstein, a lawyer for Extended Stay.
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Centerbridge, a New York private-equity firm, and Paulson & Co., a New York asset manager, matched Starwood’s offer to invest as much as $905.4 million in the company and eliminated fees Starwood required, said Marcia L. Goldstein, a lawyer for Extended Stay.
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Hilton Worldwide and IBM Announce Global Technology Infrastructure and Solutions Agreement
MCLEAN, Va. & ARMONK, N.Y.--(BUSINESS WIRE)--Hilton Worldwide and IBM (NYSE:IBM) today announced a global collaboration agreement to enhance the hospitality company’s technology infrastructure and to facilitate the development and delivery of next-generation technology solutions.
Specifically, IBM will host and manage the technology platforms that support Hilton Worldwide’s ten brands, including data center management and monitoring, global email services, web hosting and the central guest reservation system. Today’s announcement will enable Hilton Worldwide to focus even further on its core business – delivering exceptional guest experiences – while leveraging IBM’s innovation, expertise and global capabilities.
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Specifically, IBM will host and manage the technology platforms that support Hilton Worldwide’s ten brands, including data center management and monitoring, global email services, web hosting and the central guest reservation system. Today’s announcement will enable Hilton Worldwide to focus even further on its core business – delivering exceptional guest experiences – while leveraging IBM’s innovation, expertise and global capabilities.
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Prague hotels owned by Quinn family rack up €18m in losses
A luxurious Hilton hotel in Prague, owned by the Quinn family, racked up losses of €16.5m in 2008, according to accounts filed in Luxembourg and seen by the Irish Independent.
The figure represents a sharp deterioration in the performance of the company since 2007, when it recorded a profit of almost €4.5m.
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The figure represents a sharp deterioration in the performance of the company since 2007, when it recorded a profit of almost €4.5m.
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Lake Las Vegas to leave bankruptcy in two months
Lake Las Vegas is on track to emerge from bankruptcy in about two months with $24 million in hand to reinvest in the Henderson community, a company official said.
Jim Coyne, senior vice president and chief operating officer for Lake Las Vegas Resort, said a federal bankruptcy court recently signed off on the development's 670-page disclosure statement and reorganization plan.
Creditors could vote to approve the plan in late June, clearing Lake Las Vegas to emerge from bankruptcy protection
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Jim Coyne, senior vice president and chief operating officer for Lake Las Vegas Resort, said a federal bankruptcy court recently signed off on the development's 670-page disclosure statement and reorganization plan.
Creditors could vote to approve the plan in late June, clearing Lake Las Vegas to emerge from bankruptcy protection
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Tamarack Resort (Idaho) may be surrendered
Tamarack co-owner Jean-Pierre Boespflug has concluded that somebody else will have to breathe life into the resort he built and hoped to finish.
Boespflug said a bankruptcy judge's decision Friday to allow Tamarack Resort LLC to convert its liquidation case to a reorganization case will buy time to find somebody willing to pay for the stalled project. And that will ensure creditors owed more than $314 million will receive part of their money back.
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Boespflug said a bankruptcy judge's decision Friday to allow Tamarack Resort LLC to convert its liquidation case to a reorganization case will buy time to find somebody willing to pay for the stalled project. And that will ensure creditors owed more than $314 million will receive part of their money back.
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Casino Vote In Boston Could Launch Mohegan Sun's Palmer Plan
Massachusetts legislators are scheduled to debate a bill Tuesday that would allow for resort-style casinos in the Bay State, as well as slot-machines at existing racetracks.
Expanded gambling in Massachusetts is sure to have significant effects in Connecticut, because Massachusetts residents spend more than $700 million annually at Foxwoods Resort Casino and Mohegan Sun.
Mohegan Sun, owned by the Mohegan tribe, has already positioned itself to take advantage of expanded gambling in Massachusetts. It has a 99-year lease on more than 150 acres in Palmer, east of Springfield, and a proposal to build a casino there with thousands of slot machines, as well as table games and a hotel.
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Expanded gambling in Massachusetts is sure to have significant effects in Connecticut, because Massachusetts residents spend more than $700 million annually at Foxwoods Resort Casino and Mohegan Sun.
Mohegan Sun, owned by the Mohegan tribe, has already positioned itself to take advantage of expanded gambling in Massachusetts. It has a 99-year lease on more than 150 acres in Palmer, east of Springfield, and a proposal to build a casino there with thousands of slot machines, as well as table games and a hotel.
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City loses suit to collect motel taxes from Net
A Warren County judge ruled that Bowling Green’s efforts to try to collect local motel tax from discount online room providers is a legislative matter, rather than a judicial one.
Warren Circuit Judge Steve Wilson said Thursday he ruled in favor of Hotels.com and other defendants to dismiss the case. That ruling may be appealed - something for the Bowling Green City Commission to decide.
Bowling Green and Warren County have a 6 percent motel room tax, including a special 2 percent tax that goes to development of the Southern Kentucky Performing Arts Center.
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Warren Circuit Judge Steve Wilson said Thursday he ruled in favor of Hotels.com and other defendants to dismiss the case. That ruling may be appealed - something for the Bowling Green City Commission to decide.
Bowling Green and Warren County have a 6 percent motel room tax, including a special 2 percent tax that goes to development of the Southern Kentucky Performing Arts Center.
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California Pizza Considers Sale as Results Improve
April 12 (Bloomberg) -- California Pizza Kitchen Inc. said it is reviewing options including a possible sale and reported preliminary first-quarter earnings that beat its forecast.
Alternatives may include a sale, merger or changes to the company’s capital structure, the Los Angeles-based restaurant chain said today in a statement. Moelis & Co. is advising the company, which has 253 company-owned stores and franchises.
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Alternatives may include a sale, merger or changes to the company’s capital structure, the Los Angeles-based restaurant chain said today in a statement. Moelis & Co. is advising the company, which has 253 company-owned stores and franchises.
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Harrah’s Debt Rallies to Highest Level Since Apollo, TPG Buyout
April 12 (Bloomberg) -- Harrah’s Entertainment Inc. bonds are trading at the highest level since the world’s largest casino operator was purchased in a leveraged buyout in January 2008 as a two-year slump in Las Vegas gambling eases.
Harrah’s $311.3 million of 5.625 percent, 10-year notes issued in 2005 have risen almost 13 times since February 2009 to 68 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
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Harrah’s $311.3 million of 5.625 percent, 10-year notes issued in 2005 have risen almost 13 times since February 2009 to 68 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
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Donald Trump Beats Carl Icahn in Bankruptcy Battle for Casinos
April 13 (Bloomberg) -- Donald J. Trump and his partners won control of the bankrupt casino company Trump Entertainment Resorts Inc., when a judge ruled that their bid was better for creditors than a competing offer by investor Carl Icahn.
U.S. Bankruptcy Judge Judith H. Wizmur yesterday sided with a group of bondholders who are owed $1.2 billion. Their proposal would reduce Trump Entertainment’s debt by $1.4 billion and give the celebrity billionaire as much as 10 percent of the three- casino company he once ran.
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U.S. Bankruptcy Judge Judith H. Wizmur yesterday sided with a group of bondholders who are owed $1.2 billion. Their proposal would reduce Trump Entertainment’s debt by $1.4 billion and give the celebrity billionaire as much as 10 percent of the three- casino company he once ran.
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Occupancy drives double-digit revpar growth in London hotels
London hotels have enjoyed double-digit growth in revenue per available room (revpar) during the first quarter of 2010, according to business advisory firm Deloitte.
Revpar growth of 10.1% to £94 was driven by occupancy which rose by 5.4% to 76.2%, while average room rates increased 4.5% to £123.
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Revpar growth of 10.1% to £94 was driven by occupancy which rose by 5.4% to 76.2%, while average room rates increased 4.5% to £123.
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