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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Thursday, June 24, 2010
Darden shares fall on 4th-quarter earnings miss
Shares of Darden Restaurants Inc. fell on Thursday, after the operator of Olive Garden, Red Lobster and LongHorn steakhouse said its fourth-quarter profit fell more than analysts expected as consumer spending remained volatile.
THE SPARK: The restaurant chains' combined revenue at locations open at least a year declined 2.3 percent in the company's 2010 fiscal fourth quarter. The Orlando, Fla.-based company's CEO said month-to-month sales volatility in the industry during the March-through-May period "is an indication consumers remain cautious." Still he said in this fiscal year he expects economic and industry conditions to improve, with same-restaurant sales growth at the chains seen rising 2 precent to 3 percent.
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THE SPARK: The restaurant chains' combined revenue at locations open at least a year declined 2.3 percent in the company's 2010 fiscal fourth quarter. The Orlando, Fla.-based company's CEO said month-to-month sales volatility in the industry during the March-through-May period "is an indication consumers remain cautious." Still he said in this fiscal year he expects economic and industry conditions to improve, with same-restaurant sales growth at the chains seen rising 2 precent to 3 percent.
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Abramoff's Updated Resume: Fraudster Now Working at Baltimore Pizza Restaurant
Jack Abramoff, the Washington lobbyist who once snapped photos with President Bush, is now working at a pizza joint in Baltimore, the Jewish Times of Baltimore reports.
After serving 43 months in prison, Casino Jack has been hired by Tov Pizza, a kosher pizza restaurant, and is working in the back office, according to a report by The New York Times, which recently sent a reporter on an unsuccessful stake out.
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After serving 43 months in prison, Casino Jack has been hired by Tov Pizza, a kosher pizza restaurant, and is working in the back office, according to a report by The New York Times, which recently sent a reporter on an unsuccessful stake out.
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Toronto hotel workers strike ahead of G20 summit
June 24 (Reuters) - Employees at a downtown Toronto hotel hosting Group of 20 summit delegates walked off the job on Thursday, two days before the gathering of world leaders begins.
Several dozen picketing workers at the Hotel Novotel Toronto Centre (ACCP.PA) blocked traffic, banged pots and blew "vuvuzela" noise-makers outside the French-owned hotel.
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Several dozen picketing workers at the Hotel Novotel Toronto Centre (ACCP.PA) blocked traffic, banged pots and blew "vuvuzela" noise-makers outside the French-owned hotel.
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700-Plus Credit Cards Stolen from Hotel
Computer hackers targeting travelers at luxury hotels across the country made off with hundreds of thousands of dollars during the past three months by breaking into the computer system of a national hotel chain and stealing the guests' credit card information, Texas police officials told ABC News today
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Wednesday, June 23, 2010
Waldorf Hotel Used as Torture Den by Bondage Couple
THE WALDORF Hilton hotel, one of London's most prestigious five star establishments, was the location for what a judge called 'medieval torture' involving nipple clamps, hot wax and blood.
Southwark Crown Court heard yesterday that Finola McKenna, 46, and Neil Fagan, 61, had been meeting for S&M sex for several years, but that on 20 May 2009, things took a more sinister turn.
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Southwark Crown Court heard yesterday that Finola McKenna, 46, and Neil Fagan, 61, had been meeting for S&M sex for several years, but that on 20 May 2009, things took a more sinister turn.
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Two firefighters suspended for taking beer from fire-ravaged hotel
Two firefighters in Oliver, B.C., have been suspended over allegations that they drank beer saved from a fire at a historic hotel.
The RCMP is investigating allegations that six kegs of beer were removed from the fire-ravaged Mesa Hotel on May 23. One of the kegs was tapped after all six were moved to the Oliver fire hall in the back of a private truck.
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The RCMP is investigating allegations that six kegs of beer were removed from the fire-ravaged Mesa Hotel on May 23. One of the kegs was tapped after all six were moved to the Oliver fire hall in the back of a private truck.
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Whitbread to maintain hotel price war
The hotel price war that broke out last summer is expected to continue to the end of this year after Whitbread said it had no plans to end the cheap room promotion at its Premier Inn budget hotel chain.
Having for years shunned discounting, Whitbread introduced a £29-a-room offer last June in response to aggressive price-cutting by mid-market competitors
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Having for years shunned discounting, Whitbread introduced a £29-a-room offer last June in response to aggressive price-cutting by mid-market competitors
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Pittsburgh Hotel-condo project OK'd by city
City planning commission members cleared the way Tuesday for the start of a grandiose $100 million hotel-condominium project on Mount Washington, but one key hurdle remains: financing.
Members voted unanimously to approve the final land development plan for the One Grandview Avenue development, which would sit at the site of the former Edge restaurant and offer guests and residents dramatic views of the Downtown skyline.
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Members voted unanimously to approve the final land development plan for the One Grandview Avenue development, which would sit at the site of the former Edge restaurant and offer guests and residents dramatic views of the Downtown skyline.
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Hotel capex to drop for second straight year
NEW YORK, June 22 (Reuters) - Spending on new carpets, beds and lampshades at U.S. hotels will drop for a second straight year in 2010, as the lodging industry grapples with high debt and a slow recovery of demand.
Capital expenditures at U.S. hotels will fall about 10 percent from 2009 levels to $3 billion, according to a new study from New York University's hospitality school.
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Capital expenditures at U.S. hotels will fall about 10 percent from 2009 levels to $3 billion, according to a new study from New York University's hospitality school.
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