Recent Developments in Global Hospitality: Marriott, Hyatt, Palladium, and More

Marriott International is launching two luxury safari camps in Kenya, while Hyatt has announced a $2.7 billion tender for Playa Hotels & Resorts. Palladium Hotel Group is undertaking a $20 million expansion in Jamaica, and Apple Hospitality REIT shows growth in RevPAR. Loan modifications and significant share acquisitions mark trends in financing, while Canada and the Middle East demonstrate expanding hotel pipelines.

Marriott International is expanding its luxury offerings in Kenya by collaborating with the Lazizi Group. This partnership includes the launch of two tented safari camps: The Ritz-Carlton, Masai Mara Safari Camp and JW Marriott Mount Kenya Rhino Reserve Safari Camp, both featuring 20 keys. The former is set to open in August, while the latter is scheduled for early 2026, enhancing Marriott’s portfolio to three luxury safari camps in the nation.

Hyatt has initiated a tender offer to acquire shares of Playa Hotels & Resorts, gathering initial non-binding interest for Playa’s real estate assets, according to analyst Michael Bellisario of R.W. Baird. The offer, which totals $2.7 billion, must see 80% of Playa shares tendered to succeed, and it is set to expire on April 25.

In Jamaica, Palladium Hotel Group, in partnership with Grupo Empresas Matutes, has commenced a $20 million expansion project at the Grand Palladium Hotels & Resorts in Montego Bay. This project aims to introduce over 948 new rooms, increasing the total from 1,049 rooms across two hotels, the Grand Palladium Lady Hamilton Resort & Spa and Grand Palladium Jamaica Resort & Spa.

Apple Hospitality REIT reported a revenue per available room (RevPAR) increase of 2.7% for Q4 year-over-year, with a full-year 2024 growth of 1.4%. This growth is attributed to a rise in business transient demand, reflected in a 1.7% increase in average daily rate (ADR) and a 2.6% rise in occupancy. Apple also added two hotels while selling six others for a combined gross price of approximately $63.4 million.

Hamilton Point Investments has attained a loan modification for an undisclosed amount related to the 241-key Hotel Indigo Detroit Downtown. CooperWynnCapital facilitated the financing, allowing HPI to retain its existing loan terms while eliminating older, costly covenants.

Tilman Fertitta, owner of the Golden Nugget in Las Vegas, has become Wynn Resorts’ principal shareholder, owning approximately 12.6 million shares after surpassing the 10% ownership threshold. This acquisition positions him as the largest individual stakeholder in the company following a 9.9% stake increase last year.

Canada’s hotel sector exhibited growth in January, characterized by increased room rates. Performance metrics included a 49.8% occupancy rate, a 2.7% increase in ADR, and a RevPAR improvement of 3.1%. British Columbia led occupancy levels at 52.9%, while Calgary experienced the lowest occupancy at 45.3%.

The Middle East’s hotel pipeline remains robust. As of Q4, Saudi Arabia and Egypt top the list, with 619 projects and 155,428 rooms slated for development. Projects in the luxury segment showed promising growth, comprising 179 projects. Key cities include Riyadh and Dubai, noted for their substantial pipeline developments.

Radisson Hotel Group is expanding its footprint in India with the signing of the Era Hotel Bhubaneswar, which will be part of Radisson Individuals. The new establishment is projected to open in the latter half of 2025, further enhancing the group’s presence in the Indian hospitality market.

In summary, significant developments are unfolding in the global hospitality sector, including Marriott’s expansion into luxury safari camps in Kenya and Hyatt’s tender offer for Playa Hotels & Resorts. Furthermore, the Palladium project in Jamaica and growth reported by Apple Hospitality REIT exemplify the industry’s resilience. The hotel pipelines in the Middle East and Canada continue to showcase promising growth, with Radisson’s expansion in India adding to the positive outlook for future hotel projects.

Original Source: www.hotelinvestmenttoday.com