Briefs: Oyo IPO worth about $ 9 billion; Scandic signs in Sweden
Oyo sees $ 9 billion IPO: Oyo Hotels & Rooms, Gurugram, India, reportedly expects to receive a valuation of approximately $ 9 billion in its IPO after a preliminary round of discussions with its potential investors. The Indian startup, which is supported by Softbank Group Corp., will receive its approval to launch the IPO next week. The valuation is lower than the USD 12 billion initially reported last year and also lower than the level of USD 10 billion that the startup reached in 2019. The IPO will consist of primary shares, or those sold by the company, and a smaller proportion of secondary shares. Softbank, which owns 47% of the shares, plans to sell a small part of the shares.
Value Partners, Hawkins Way from JV: Value Partners, Minneapolis, Minnesota, and Hawkins Way Capital, Los Angeles, have formed a joint venture to acquire over $ 1 billion in value-added and distressed hotel and residential assets in major US cities. The acquired assets will be operated under a subsidiary of Hawkins Way. Through a subsidiary, the new JV recently acquired a non-operating hotel in New York City – a 764-room property previously operated as a DoubleTree hotel. The JV will be seeded with operating properties in Oakland, San Francisco and two in Brooklyn. Lazard was the exclusive financial advisor to Hawkins Way and the partnership in the transaction.
Lotte expands US portfolio: South Korea-based Lotte Hotels & Resorts announced its first foreign L7 hotel in Chicago, following the acquisition of Kimpton Hotel Monaco Chicago from Florida-based Xenia Hotels & Resorts for $ 36 million. The hotel was purchased together with Korea Overseas Infrastructure & Urban Development Corp. The hotel will be renovated and will be open by the end of 2023. There are currently three L7 hotels in South Korea.
Scandic signs in Sweden: Scandic Hotels has signed a long-term lease agreement with Skansa for Scandic Sundsvall Central, a new hotel in Sundsvall, Sweden. The 210-key hotel is scheduled to open in 2024 and will also have a restaurant and bar. The hotel is expected to maintain a very high energy standard and be 100% climate neutral. Scandic has two other hotels in Sundsvall with a total of 312 rooms.
Saudi Arabia’s TDF, Deutsche Hospitality signs agreement: Saudi Arabia’s Tourism Development Fund signed a memorandum of understanding with Deutsche Hospitality to operate and develop the Steigenberger Porsche Design Hotels project in Saudi Arabia. The agreement includes the right to exclusively debut the Steigenberger Porsche Design Hotels project in the Middle East. With 150 rooms, suites and penthouses, the luxury hotels will include a restaurant and lounge concept, meeting places and health and beauty facilities.
IDB Invest, Banco Popular Dominicano finans Grupo Piñero: IDB Invest, Washington DC, provided $ 120 million in financing to Spanish hotel operator Grupo Piñero to help the latter reopen its hotels in the Dominican Republic and Jamaica that had to close due to the pandemic. In addition, Banco Popular Dominicano will provide a $ 80 million loan to create a total package of $ 200 million. Liquidity will help Grupo Piñero’s working capital requirements, provide funds to ensure the competitiveness of its properties and provide a financial boost when it strengthens the recovery. The company plans to use the funds to revitalize its regional portfolio. IDB invest will also offer technical support for protection of coastal areas, restoration of mangroves and corals and a consulting business to analyze the impact of climate change on the Group’s hotels.
Asia Pac leads in construction: The Asia-Pacific region was the only region to show increased hotel construction activity at the end of the fourth quarter of 2021 compared to the same period in 2021, according to data from December 2021 from STR.
America
- In construction: 211,453 rooms (-16.8%)
- Final planning: 220,044 rooms (-20.6%)
- Planning: 329,474 rooms (+39%)
- Total under contract: 760 971 rooms (-1%)
The United States has the most rooms under construction in the region, followed by Mexico (14,020) and Canada (6,856).
Europe
- In construction: 221,789 rooms (-7.6%)
- Final planning: 163,805 rooms (-4.9%)
- Planning: 159,232 rooms (+ 4.7%)
- Total Under contract: 544 826 rooms (-3.5%)
Germany (45,121) and the United Kingdom (31,464) continue to lead Europe in terms of total rooms under construction.
Asia Pacific
- Under construction: 473,983 rooms (+ 5%)
- Final planning: 170 210 rooms (-3.8%)
- Planning: 297,687 rooms (+ 16.3%)
- Total under contract: 941,880 rooms (+ 6.5%)
China (290,265) leads among the countries with the most rooms under construction, followed by Vietnam (30,546).
Middle East & Africa
- In construction: 130 225 rooms (-5.5%)
- Final planning: 38,765 rooms (-14.3%)
- Planning: 67,142 rooms (+ 2.8%)
- Total under contract: 236 132 rooms (-4.9%)
Saudi Arabia (40,269) and the United Arab Emirates (31,715) are leaders in construction.
Talbot Hotels acquires Clonmel Park Hotel: Talbot Hotels has acquired from Tetrarch Capital the 4-star 99-room Clonmel Park Hotel in Clonmel, Ireland, in an off-market transaction for close to EUR 7.5 million (USD 8.56 million). This marks Talbot’s first property in County Tipperary. The deal was brokered by CBRE. The three-storey hotel, built in 2006, covers 6,655 square meters and will be renamed the Talbot Hotel Clonmel. The deal with Talbot follows Tetrarch’s sale of Killashee Hotel last month to Barry English for approximately EUR 25 million (USD 25.53 million).
MUI sells The Regency Hotel: Malaysia-based Malayan United Industries Berhad (MUI) has sold The Regency Hotel in the UK to Westbourne Leisure Ltd. for £ 6.5 million ($ 8.88 million). Located in Shirley, Solihull, West Midlands, this 3-star hotel has 111 rooms spread over 77,526 square feet and was previously operated as the Corus Hotel Solihull.
Hilton’s new opening in Jamaica: Hilton Hotels & Resorts opens ROK Hotel, a new hotel in Kingston, Jamaica. The 168-room hotel will be part of the Hilton Tapestry Collection and is expected to open on May 31. Located in the heart of Kingston Waterfront, the hotel will include three restaurant concepts, an outdoor pool and a fitness center.