NEW YORK (Dow Jones)--Bank of America Merrill Lynch and Goldman Sachs (GS) priced $2.3 billion in mezzanine debt left over from the $26 billion buyout of Hilton Worldwide by Blackstone Group (BX) in 2007, according to people familiar with the matter.
That buyout deal was done at the peak of the market, and just before the credit market collapsed, making it difficult for the seven banks involved in the transaction to get the debt off their books.
In the past six months, prices of commercial real estate securities both in the primary and secondary debt markets have improved dramatically. Much of this is due to the ready flow of capital from a growing pool of investors, who see these assets as relatively safe and cheaper than other comparable corporate debt.
So much so that the stalled attempts to securitize and sell the Hilton debt have been revived after nearly three years. Bank of America and Goldman are working together to sell the more than $5 billion of debt on their books. The first phase was the mezzanine debt sale, of which Bank of America held $1.7 billion and Goldman the remaining $600 million.
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Friday, June 25, 2010
Shareholder of Chongqing Hilton Held By Police
Police have detained Peng Zhimin, a major shareholder of the Chongqing Hilton Hotel, for suspected links to organized crime and prostitution, the police announced on June 24.
Peng is also accused of a giving 300,000 yuan (US$44,200) bribe to the former vice director of Chongqing Public Security Bureau.
On June 19, police raided the Chongqing Hilton Hotel over suspicions of prostitution and other crimes. A total of 22 people were arrested.
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Peng is also accused of a giving 300,000 yuan (US$44,200) bribe to the former vice director of Chongqing Public Security Bureau.
On June 19, police raided the Chongqing Hilton Hotel over suspicions of prostitution and other crimes. A total of 22 people were arrested.
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Gucci Sues Founder’s Granddaughter Over Branded Hotel in Dubai
June 25 (Bloomberg) -- Elisabetta Gucci’s plan to open a global chain of hotels under her name may be blocked by the luxury goods company founded by her great-grandfather.
The daughter of late fashion mogul Paolo Gucci, who designed the Italian brand’s trademark stirrup, plans to open an 87-suite property in Dubai’s Media World district by the end of the year, according to Lorens Ziller, managing director of her EG Hotels company. Branded EG Hotels by Elisabetta Gucci, it will showcase furniture designed by her and built by Formitalia.
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The daughter of late fashion mogul Paolo Gucci, who designed the Italian brand’s trademark stirrup, plans to open an 87-suite property in Dubai’s Media World district by the end of the year, according to Lorens Ziller, managing director of her EG Hotels company. Branded EG Hotels by Elisabetta Gucci, it will showcase furniture designed by her and built by Formitalia.
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Wyndham Group to manage Kingston's Hilton Hotel
DELROY Howell, chairman of Ocean Chimo, has announced that the Hilton Kingston Hotel located on Knutsford Boulevard, New Kiingston is to change management. He further declared that the hotel will change its flag effective June 30, 2010 at midnight.
"We have forged a partnership with the Wyndham Group, the largest hotel group in the world to manage the property effective July 1, 2010. This is a strategic move on our part to ensure that we deliver the highest quality service to our guests and team members and ensure high returns to shareholders." Howell believes this opportunity represents a stronger projected revenue base and heightened support from the Wyndham management group.
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"We have forged a partnership with the Wyndham Group, the largest hotel group in the world to manage the property effective July 1, 2010. This is a strategic move on our part to ensure that we deliver the highest quality service to our guests and team members and ensure high returns to shareholders." Howell believes this opportunity represents a stronger projected revenue base and heightened support from the Wyndham management group.
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Four Seasons names Kathleen Taylor CEO; founder Isadore Sharp to step down
Four Seasons just announced that Kathleen Taylor on Aug. 1 will take on the new title of CEO, as founder Isadore Sharp transitions from his longtime role.
Taylor's promotion will make her the only female chief among the big luxury hotel companies, including Ritz-Carlton and Starwood's group that includes the St. Regis chain.
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Taylor's promotion will make her the only female chief among the big luxury hotel companies, including Ritz-Carlton and Starwood's group that includes the St. Regis chain.
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Why eliminating nightly turndown service wasn't an option at Four Seasons hotels
At the height of the luxury travel downturn last year, the Four Seasons hotel chain questioned whether the longtime tradition of preparing every guest's room for bed time was still worth it at a time when guests were paying less. But, ultimately, the company concluded that eliminating nightly turndown service would be a costly mistake.
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