Hospitality

Hyatt to Furlough Most Corporate Employees in Response to COVID-19

by Kristin Harlow March 25, 2020

CHICAGO — As a result of COVID-19 significantly decreasing demand for hotel rooms and event space, Chicago-based Hyatt Corp. has suspended operations at many hotels and implemented temporary furloughs as well as pay and work reductions that will impact Hyatt corporate workers across the globe. The furloughs and reductions are in place from April 1 through May 31 and affect two-thirds of the company’s U.S. corporate employees, according to Bloomberg. The furloughs will enable Hyatt corporate staff to retain eligibility for healthcare and other benefits. Colleagues may also file for unemployment benefits during this period. Hyatt is also in the process of setting up a global Hyatt Care Fund, which will be seeded by 100 percent of Hyatt leadership team’s salary reductions as an initial contribution. Both President and CEO Mark Hoplamazian and Chairman of the Board Tom Pritzker are forgoing 100 percent of their salaries and Hyatt’s senior leadership team is taking a salary cut of 50 percent through the end of May. The proceeds of the fund will be distributed to those workers with the most pressing financial needs due to loss of income.

March 25, 2020

Development Hospitality Loans South Carolina Southeast

Knighthead Funding Secures $30.5M Construction Loan for Boutique Hotel in Historic Charleston

by Alex Tostado March 24, 2020

CHARLESTON, S.C. — Knighthead Funding LLC has provided a $30.5 million construction loan for Roost Charleston, a planned boutique hotel that will also include 11,003 square feet of retail space. The non-recourse, floating-rate loan has a 27-month term. The property will comprise a newly constructed building as well as three redeveloped, historic buildings. Roost Charleston will offer a combination of standard hotel guest rooms and extended stay apartments. Amenities will include a restaurant, café, spa and an outdoor courtyard. The building site is located at the northeast corner of King and George streets in historic Charleston. Brian Sullivan and Jonathan Daniel of Knighthead Funding originated the loan on behalf of the borrower, King & George Street LLC, an affiliate of Method Co. A timeline for construction was not disclosed.

March 24, 2020

Hospitality Massachusetts New Jersey New York Northeast Pennsylvania

Oxford Economics Study Projects 44 Percent Hotel Job Losses Nationwide

by Alex Patton March 24, 2020

NEW YORK, NEW JERSEY, PENNSYLVANIA, MASSACHUSETTS — An Oxford Economics study for the American Hotel & Lodging Association (AHLA) has found that 44 percent of hotel employees in every state have lost or are projected to lose their jobs as a result of the COVID-19 outbreak. AHLA reports that hotel occupancy rates in some markets are below 20 percent following restrictions of air-travel and business shutdowns in many states, including New York. Of the state’s 112,897 direct hotel operations jobs, 49,674 have been lost or are projected to be lost in the coming weeks. Hotel job loss has also affected other major markets in the Northeast including New Jersey (52,490 jobs, 23,096 lost); Pennsylvania (65,229 jobs, 28,701 lost); and Massachusetts (40,562 jobs, 17,847 lost).

March 24, 2020

Features Hospitality Industrial Multifamily Office Restaurant Retail

COVID-19 and Commercial Real Estate: What We Know, What We Don’t

by Jeff Shaw March 23, 2020

The coronavirus pandemic (COVID-19) has not only impacted the physical health of humans around the world, but the health of the U.S. economy as well. While the stock market rallied over 11 percent on Tuesday, its biggest jump in nearly 90 years, on news that a federal stimulus bill to rescue the economy from the coronavirus was imminent, the Dow Jones Industrial Average was still down 31 percent from its most recent high at the closing bell. Meanwhile, economists say weekly jobless claims — new filings for unemployment insurance — could hit 2 million or 3 million. The Labor Department will release the latest figures on Thursday morning. Before the coronavirus hit, weekly jobless claims hovered around 215,000. Though no one knows the true fallout yet — because we’re still in the thick of it. “The impact of the crisis on the commercial real estate market has been dramatic so far, and we are only in the beginning,” says Alex Zikakis, president and founder of Capstone Advisors, a real estate investment, development and asset management company in Carlsbad, Calif. “Many small businesses, especially in retail, are facing extreme pressure as people social distance and only shop for absolute necessities. I …

March 23, 2020

Hospitality Northeast Pennsylvania

Cambridge Landmark Completes $30M Renovation of Sheraton Philadelphia Downtown Hotel

by Alex Patton March 23, 2020

PHILADELPHIA — Hospitality owner Cambridge Landmark has completed a $30 million renovation of its 760-room Sheraton Philadelphia Downtown hotel in the Center City area of Philadelphia. The project upgraded the hotel’s guestrooms and 2,071-square-foot fitness center, which now features four Peloton bikes, among other new fitness equipment. The renovation also delivered a new 60,000-square-foot event space with two dining options.

March 23, 2020

Hospitality Loans New York Northeast

Helmsley Spear Arranges $9.5M Refinancing Loan for Kings Hotel in Brooklyn

by Alex Patton March 23, 2020

NEW YORK CITY — Helmsley Spear LLC has arranged a $9.5 million refinancing loan for the 49-room Kings Hotel in Brooklyn. Crown Bank provided the 10-year, fixed-rate loan that carries a 25-year amortization schedule. Located at 2416 Atlantic Ave., the hotel features a fitness center and conference rooms. Showket Ahamed of Helmsley Spear arranged the financing.

March 23, 2020

California Hospitality Loans Western

Sonnenblick-Eichner Co. Arranges $20.5M Loan for Carriage Inn in Los Angeles

by Amy Works March 23, 2020

LOS ANGELES — Beverly Hills, Calif.-based Sonnenblick-Eichner Co. has secured $20.5 million in first mortgage debt for Carriage Inn, a hotel located at the intersection of Burbank Boulevard and the San Diego Freeway in the Sherman Oaks neighborhood of Los Angeles. The non-recourse, 10-year, fixed-rate loan features interest-only payments for the entire loan term. Affiliated with the Best Western brand, the hotel features 178 guest rooms, meeting space, a pool, Jacuzzi, fitness center and surface parking for 160 cars. Patrick Brown and Elliot Eichner of Sonnenblick-Eichner Co. arranged the financing for the undisclosed borrower. The lender was also not disclosed.

March 23, 2020

Company News Hospitality Top Stories

Marriott to Furlough Two-Thirds of Domestic, International Corporate Staff

by Taylor Williams March 23, 2020

BETHESDA, MD. — Marriott International Inc. (NASDAQ: MAR) will furlough approximately two-thirds of its 4,000 corporate staff members in the company’s Bethesda office, as well roughly two-thirds of its international corporate staff, according to multiple media sources. A company spokesperson first confirmed the news to The Wall Street Journal, which also reported that most furloughs are expected to last 60 to 90 days. Hospitality and travel blog One Mile at a Time reported the same time frame. The announcement comes on the heels of Marriott’s decision last week to furlough what could ultimately be tens of thousands of employees at its hotels around the world. According to the company’s website, Marriott owned and operated about 7,300 properties under 30 brands in 134 countries. Those properties total more than 1.3 million rooms. Marriott also employs some 130,000 people worldwide. On a conference call late last week, Marriott CEO Arne Sorenson told investors that after seeing strong growth in revenue per available room (REVpar) in its European and North American hotels during the first two months of the year, these properties were now seeing an average occupancy rate of about 25 percent. That figure stood at roughly 70 percent a year ago, …

March 23, 2020

Acquisitions Florida Hospitality Southeast

Marcus & Millichap Arranges $5.5M Sale of Travelodge Hotel in Orlando

by Alex Tostado March 20, 2020

ORLANDO, FLA. — Marcus & Millichap has arranged the $5.5 million sale of Travelodge by Wyndham Orlando Near Florida Mall, a 132-room hotel in Orlando. The property is situated at 1850 W. Landstreet Road, eight miles south of downtown Orlando and two miles from The Florida Mall. The hotel offers free parking, a pool, business center and laundry facilities. Ahmed Kabani of Marcus & Millichap represented the seller, an undisclosed limited liability company, and the buyer, a private investor, in the transaction.

March 20, 2020

Hospitality Illinois Midwest

Park Hyatt, Peninsula Hotels to Temporarily Close Doors in Chicago

by Kristin Harlow March 19, 2020

CHICAGO — The Park Hyatt Chicago and Peninsula, both luxury hotels in downtown Chicago, have temporarily closed their doors due to the coronavirus outbreak. The 198-room Park Hyatt will not accept room, restaurant, bar or other reservations until April 30. No reservations will be available until further notice at the 339-room Peninsula, according to the hotel’s website. These properties are the first two downtown Chicago hotels to close because of the coronavirus and other closures will likely follow, according to Crain’s Chicago Business.

March 19, 2020

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