Brookfield in Exclusive Talks to Buy SACO

Brookfield is in exclusive talks to buy the SACO serviced apartments business from Oaktree Capital Management for £430 million. The SACO chain consists of 39 properties across the UK (nine leasehold assets flagged under the Locke brand and 30 leasehold properties operated under the SACO brand); additionally, the deal includes more than 900 freehold Locke-branded rooms in SACO’s development pipeline, which include the company’s first international locations in Dublin and Amsterdam, and SACO’s online platform. The acquisition is Brookfield’s first foray into the serviced apartment sector and the largest serviced apartment investment deal in the UK to date.

Starwood Capital Purchases the Sofitel Budapest Chain Bridge…

Through a controlled affiliate, Starwood Capital Group has acquired the Sofitel Budapest Chain Bridge Hotel in Hungary from Orbis Hotel Group for €75 million (€210,000 per room). The 357-room hotel, at the heart of the Hungarian capital, will now undergo an extensive renovation.

…And Lampas SA Acquires the King George Hotel in Athens

Also reported recently was Lampas SA’s purchase of the King George Hotel in Athens, Greece, from Eurobank for €43 million (€422,000 per room). Lampas had leased the 102-room hotel since 2013 and operated it alongside the adjacent Grande Bretagne Hotel. Both hotels are part of Starwood’s Luxury Collection.

Accor to Make its First Appearance in Slovenia in January 2018...

AccorHotels is planning to make its debut in Slovenia by opening two properties in the city of Maribor, on the Drava River, under its Mercure and ibis Styles brands. The 76-room Mercure Maribor City Center and the 71-room ibis Styles Maribor City Center are expected to open in January 2018. The hotels will be operated by Polish group Orbis (as part of the master licence agreement Orbis signed with AccorHotels in 2015). AccorHotels has 42 hotels in its development pipeline scheduled to open across Eastern Europe.

...And Travelodge Becomes a Trio in Bath

Budget brand Travelodge has opened its third hotel in the historic city of Bath in southwest England. The 56-room Bath City Centre (Bath Spa) Travelodge was created with an investment of £12 million and has become the group’s 552nd hotel overall. Travelodge also recently completed a £2 million renovation of one of its other Bath hotels, the 125-room Bath Waterside Travelodge.

New Serviced Apartment Concept Opens in Milton Keynes

Serviced apartment group Cotels has launched a new brand and serviced apartment concept called 7Zero1 in the town of Milton Keynes, 45 miles northwest of London. The flagship 7Zero1 has a focus on fitness and wellbeing with each unit containing fitness equipment such as a yoga mat, hand weights and a Swiss ball. Additionally, 7Zero1 offers guests special membership discounts for nearby gym The Fitness Space Milton Keynes. Cotels also has properties in Luton and Northampton.

Citymax Hotels Makes its Egyptian Debut in Aswan

Dubai-based Citymax Hotels has opened its first property in Egypt in the historic city of Aswan, in the south of the country on the Nile River. The 79-room Citymax Hotel Aswan, which is owned by Egypt Holland for Touristic Investments, is the group's first hotel to operate outside of the United Arab Emirates. “Aswan is a prominent city in Egypt and has tremendous potential for growth,” commented Citymax Hotels’ chief operating officer, Russel Sharpe.

Kenya’s Third City Lodge Hotel to Open Later this Month

South African-based chain City Lodge will open its third property in Kenya this month at Two Rivers Mall on Limuru Road in Nairobi. The 200-room hotel joins sister properties in the Kenyan capital the Fairview Hotel and the Town Lodge, Upper Hill. The Two Rivers hotel is City Lodge’s 58th hotel.

Ritz-Carlton Officially Inaugurates Its First Hotel in Ras Al Khaimah

Ritz-Carlton has entered the market in Ras Al Khaimah with the opening of the Ritz-Carlton Ras Al Khaimah, Al Wadi Desert, joining three other Ritz-Carlton branded hotels in the United Arab Emirates. The hotel, which is situated within a 500-hectare nature reserve, is the product of a management agreement between Ritz-Carlton and RAK National Hotels, signed in 2016, and the transformation of an existing resort. The resort has 101 luxury villas and the first Ritz-Carlton Equestrian & Adventure Centre, offering guests horse trekking adventures.

Official Opening of the Sundus Rotana Muscat

Rotana has officially opened its first property in Muscat and its second in Oman. The 215-room Sundus Rotana Muscat is close to Muscat International Airport and the new Oman Convention & Exhibition Centre and brings the group’s room count in the sultanate up to 615. “Tourism is a key diversification driver of the Omani economy and it is our responsibility to help propel this vision forward and generate sustainable returns for Oman and its people,” said the hotel’s owner, Mohammed Al Ardhi. ”We are honoured to be partnering with one of the world’s renowned hotel chains and bring their decade-long hospitality experience to Muscat. We are confident that under their management, we will be able to offer our guests unforgettable moments,” he added.

Absolute Share Price Performance Over the Past Week – 23-30 November 2017

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