Hospitality

Marriott Tops Anbang Bid to Acquire Starwood, Raising Offer to $13.6B

by Nellie Day March 21, 2016

STAMFORD, CONN. — Marriott International Inc. (NASDAQ: MAR) has increased its bid to acquire Starwood Hotels & Resorts Worldwide (NYSE: HOT) to $13.6 billion. Marriott had previously offered $12.2 billion to acquire the hospitality company, which owns the Westin, St. Regis, Sheraton and W hotel brands, before being outbid by Beijing-based Anbang Insurance Group at $13.2 billion. The new Marriott offer values Starwood at $79.53 per share, topping Anbang’s offer of $78 per share. Marriott’s initial offer in November would’ve given shareholders 0.92 share of Marriott stock and $2 cash for each share of Starwood they own. The new offer will give shareholders less Marriott stock — 0.8 share — but considerably more cash at $21 per share, according to The New York Times. Under the new agreement, the “break-up fee” — what Starwood will have to pay Marriott if it backs out of the deal — has been increased from $400 million to $450 million. On a conference call this morning, Marriott CEO Arne Sorenson noted that Anbang could still make another offer to disrupt the deal, according to Hotel News Now. The Starwood and Marriott shareholders are both scheduled to vote April 8 on which proposal to accept. “We are pleased that …

March 21, 2016

Homewood Suites by Hilton Opens New Hotel in Davenport, Iowa

by Christina Cannon March 18, 2016

DAVENPORT, IOWA — Homewood Suites by Hilton has opened a new 102-room hotel in Davenport. Homewood Suites by Hilton Davenport is Hilton Worldwide’s newest property and features studio, one- and two-bedroom suites. Davenport Lodging Group developed and owns the hotel. Amenities at the hotel include complimentary breakfast, Wi-Fi, a basketball court, grocery shopping service, fitness center and indoor swimming pool with hot tub. The hotel is located at 4750 Progress Drive.

March 18, 2016

Connecticut Hospitality Northeast Top Stories

Starwood Hotels Considers Terminating Merger with Marriott in Favor of $13.2B Proposal from Anbang

by Christina Cannon March 18, 2016

STAMFORD, CONN. — Starwood Hotels & Resorts Worldwide Inc. is considering terminating its planned acquisition by Marriott in light of a new offer from a Chinese-led joint venture. Beijing-based Anbang Insurance Group is leading the new offer of $13.2 billion, which includes investment from J.C. Flowers & Co. and Primavera Capital Limited. The joint venture is collectively known as Anbang Consortium. Starwood, which is based in Stamford, said that the Anbang bid is a superior proposal to the price tag that Marriott agreed to pay in November. Marriott’s cash-and-stock proposal was valued at $68.06 per share, or $13.06 billion as of Thursday’s closing price, according to The Wall Street Journal. Anbang Consortium would pay $78 per share, an increase from the $76 per share proposal it made on March 10. Click here to read the details on the initial Marriott offer. Marriott has until March 28 to make a counter offer to Starwood, and has stated that it “continues to believe that a combination of Marriott and Starwood is the best course for both companies and offers the best value to Starwood shareholders.” Under the terms of the original merger agreement, Starwood, which owns the Westin, St. Regis, Sheraton and W hotel …

March 18, 2016

Hospitality Southeast Tennessee

Marcus & Millichap Brokers $58M Sale of Hampton Inn in Downtown Nashville

by John Nelson March 17, 2016

NASHVILLE, TENN. — Marcus & Millichap has brokered the $58 million sale of the 154-room Hampton Inn & Suites located at 310 4th Ave. S. in downtown Nashville. The hotel is situated across the street from the new Music City Center, two miles from Vanderbilt University and eight miles from the Nashville International Airport. Opened in 2007, the hotel features a breakfast buffet, wireless Internet access, fitness center, indoor pool and 2,500 square feet of meeting and event space. Georgia Krewson and Wes Tiner of Marcus & Millichap’s National Hospitality Group (NHG), along with Scott Franco, Zach Moore and Kelley Deibler of Marcus & Millichap’s Nashville office, represented the seller, MR Hotels LLC, in the transaction.

March 17, 2016

Hospitality Midwest Wisconsin

Marcus & Millichap Arranges $4.4M Sale of Wisconsin Hotel Property

by Christina Cannon March 17, 2016

BLACK RIVER FALLS, WIS. — Marcus & Millichap has arranged the $4.4 million sale of Comfort Inn & Suites Black River Falls. The 75-room hotel was originally constructed in 1997 as a Holiday Inn Express & Suites. The property is located at W10170 Highway 54 E. in Black River Falls, approximately 53 miles southeast of Eau Claire. Amenities include a porte-cochère, indoor pool and whirlpool and meeting space. Jon Ruzicka of Marcus & Millichap listed the property on behalf of the seller, a limited liability company. Ruzicka also secured the buyer, a private investor.

March 17, 2016

State of the Industry Hunter Hotel Conference

Features Georgia Hospitality Southeast Top Stories

Hotel Experts Preach Opportunistic Mindset at Hunter Hotel Conference

by John Nelson March 17, 2016

ATLANTA — Too often hoteliers are so immersed in executing their business plans they miss golden opportunities that suddenly arise, according to hotel experts speaking at the 28th annual Hunter Hotel Conference. During the “State of the Industry” panel, executives from Blackstone, Starwood Capital Group, Rockbridge, MCR Development LLC and Apple Hospitality REIT took the stage to discuss opportunities they see in the marketplace. Tyler Morse, CEO and managing partner of MCR Development, said the lodging industry in the United States will present ample opportunities in the next couple years. “The hotel space in particular in the U.S. economy is going to be great in 2016 and 2017. The rest of the world is kind of a disaster,” said Morse. “Funds are coming to the U.S. as a flight to quality. The U.S. is where the growth is, and the hotel business is a beneficiary of that.” In a real-world example of being opportunistic, Brian Kim, managing director of real estate at Blackstone, spoke about how the firm’s recent $6.5 billion sale of Strategic Hotels & Resorts to Beijing-based Anbang Insurance Group Inc. wasn’t the original strategy for Blackstone. Having just closed on the Strategic purchase in December 2015, Blackstone’s …

March 17, 2016

California Hospitality Top Stories Western

Luxury Hotel in San Diego to Open $107M Expansion in June

by Haisten Willis March 16, 2016

SAN DIEGO — Marriott Marquis San Diego Marina, owned by Host Hotels & Resorts Inc. (NYSE: HST), is in the final stages of a $107 million expansion. Located on downtown San Diego’s waterfront, the expansion of the luxury hotel and convention center will be complete in June. It will include two new ballrooms along with Marina Terrace, an outdoor area on the bay and the Marine Walk public walkway. The project also includes a 16-screen video wall system and a Swarovski crystal ceiling installation. A multi-million dollar makeover of the resort’s guest rooms and public areas was completed in 2011. The new construction will increase the center’s meeting, indoor and outdoor event space to 280,000 square feet. The largest portion of the expansion was adding two 36,000-square-foot ballrooms, known as Marriott Grand Ballroom and Pacific Ballroom. Each is capable of accommodating up to 3,700 guests, and both will have foyers reaching up to 25,000 square feet, offering options to extend the space. The new building features a blue glass design, which makes use of natural light. tvsdesign was the project’s architect. “We drew inspiration from the host community with its iconic coastline, which we incorporated into the design, capturing a sense of …

March 16, 2016

Florida Hospitality Loans Southeast

MetLife Provides $60M Loan for Refinancing of Grand Bohemian Hotel Orlando

by John Nelson March 15, 2016

ORLANDO, FLA. — MetLife has provided a $60 million loan for the refinancing of Grand Bohemian Hotel Orlando, a 247-room luxury hotel located at 325 S. Orange Ave. in downtown Orlando. Michael Weinberg led HFF’s debt placement team to arrange the 10-year, fixed-rate loan on behalf of the borrower, Xenia Hotels & Resorts Inc. Built in 2011, the AAA Four Diamond award-winning hotel is part of Marriott’s Autograph Collection and features 9,117 square feet of meeting and ballroom space, 1,518 square feet of pre-function space, a heated outdoor pool and whirlpool, Poseidon Spa, 24-hour fitness center, Grand Bohemian Art Gallery and three food and beverage options — The Boheme Restaurant, Bösendorfer Lounge and Starbucks. The hotel is situated across the street from the new Dr. Phillips Center for the Performing Arts and is within walking distance of the Amway Center, home of the Orlando Magic NBA basketball team.

March 15, 2016

Hospitality Kansas Midwest Multifamily Top Stories

WaterWalk Hotel Apartments Signs $150M Deal to Develop Eight Properties in Texas, Colorado

by Katie Sloan March 15, 2016

WICHITA, KAN. — WaterWalk Hotel Apartments has inked a deal with Rockford Development Group to develop eight WaterWalk franchises in San Antonio, Dallas, Austin and Denver. Paul Roberts and hotel industry veteran Rob Mossburg are leading Rockford’s end of the venture. Under the terms of the deal, Rockford will become a WaterWalk franchisee. The cost of building the eight locations was estimated at $150 million. Rockford’s construction arm will also become the preferred builder for WaterWalk-owned locations. Wichita-based WaterWalk’s hybrid hotel and apartment model is a play on the extended-stay model, combining traditional hotel services within a gated, apartment-like community. The complex offers one-, two- and three-bedroom floor plans with the option of being furnished or unfurnished upon rental. Amenities at WaterWalk include all-inclusive pricing, full-sized appliances in a modern kitchen, high-speed Internet, satellite television with premium channels and DVR, housekeeping, fitness club membership, a communal bicycle rental program, local transportation, and free breakfast. Entrepreneur Jack DeBoer, founder of Residence Inn, Summerfield Suites, Candlewood Suites and Value Place, created the new concept, which opened its first site in Wichita in 2014. WaterWalk locations target corporate housing needs, holiday travelers requiring an extended stay and those moving to a new city …

March 15, 2016

Hospitality Top Stories

China’s Anbang Insurance Group Buys Strategic Hotels & Resorts for $6.5B

by Nellie Day March 14, 2016

CHICAGO — Beijing-based Anbang Insurance Group Co. has agreed to purchase Strategic Hotels & Resorts, which owns 16 hotels throughout the U.S. Several news outlets, including The Wall Street Journal, report the purchase price as $6.5 billion, citing anonymous sources involved in the not-yet-announced deal. Anbang is purchasing the portfolio from Blackstone Group, which acquired Strategic Hotels about three months ago. The Chinese insurer is paying about $450 million more than Blackstone paid for the assets. Properties under the Chicago-based Strategic Hotels & Resorts flag include the JW Marriott Essex House in New York City; the Montage in Laguna Beach, Calif ; the Hotel del Coronado in San Diego; Ritz Carlton properties in Moon Bay and Laguna Niguel, Calif.; InterContinental hotels in Chicago and Miami; and Four Seasons hotels in Washington, Austin, Texas, and Silicon Valley, Calif. Anbang purchased the famed Waldorf-Astoria in New York from Hilton Worldwide Holdings for nearly $2 billion in late 2014. The acquisition was one of the highest price-per-room hotel transactions ever, according to Fortune magazine. Anbang also submitted a $12.8 billion bid to takeover Starwood Hotels & Resorts Worldwide, which could disrupt a pending deal with Marriott International. The consortium offered to pay an …

March 14, 2016

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