Global Hospitality Report (October 10, 2016)

HVS Market Pulse: Baton Rouge, LA 
By Bunmi Oyinloye

Baton Rouge’s economy has been hit by a loss in energy-related demand and a catastrophic flood. Nevertheless, healthcare expansions and the rise of technology companies in the market are generating demand for local hotels.

In Focus: Patras, Greece 
By Nana Boussia and Pavlos Papadimitriou

This snapshot provides an overview of Patra’s hotel market. Patras is the regional capital of Western Greece and the country’s third largest city while the port of the city serves as the main gateway to Greece from Western Europe.

2016 Canadian Hotel Valuation Index 
By Monique Rosszell, and Cedric Oberlin

The HVS 2016 Canadian Hotel Valuation Index (HVI) not only releases countrywide hotel values for 2015 but also projects the direction of these values through 2019.

CHICOS 2016 To Bring Together More Than 300 Investors and Operators 

Caribbean Hotel Investment Conference & Operations Summit (CHICOS) is the premier industry conference for the region and will be held at the prestigious Ritz-Carlton Hotel in San Juan, Puerto Rico on  November 10-11, 2016. CHICOS 2016 will bring together more than 300 investors and operators, and feature panels and discussions focused on the key issues impacting hospitality development in the region today: the availability of financing; lessons learned for future large scale mixed-use projects; the renewed interest and penetration of the all-inclusive and vacation ownership segments; the opportunities that lie in Cuba, and so much more. Attendees include governmental representatives, opinion leaders, developers, bankers and other lenders, tourism officials, investment funds, hotel brand executives, companies seeking investors for their tourism projects, franchise organizations, public and private institutions, advisors and architects and designers.

Red Planet Receives Investment from Goldman Sachs; Aims to Speed Up Expansion Across Asia 

Founded in 2010, Red Planet Hotels is a fast growing Pan-Asian budget hotel chain, currently owning and operating a portfolio of 26 hotels (4,118 rooms) in Japan, Thailand, the Philippines and Indonesia. The company recently made an announcement that they have received US$70 million investment from leading global investment bank, Goldman Sachs, which will facilitate the activation of a confirmed pipeline for 10 more hotels to open over the next two years. On the back of this fresh funding, Red Planet Hotels confidently targets to achieve its goal for an IPO in 2018. Since 2011, Red Planet Hotels has raised US$240 million in capital, and the funding from Goldman Sachs positions the company well to complete its next and final pre-IPO round of capital raising amounting to US$250 million. Simon Gerovich, Chairman of Red Planet Hotels, commented, “The investment we have received from Goldman Sachs will augment our expansion capabilities in the short term and allow us to focus on our longer-term goals of scaling up our hotel footprint across the Asia Pacific region.”

Grosvenor Sells its Stake in Peninsula London Development  

Grosvenor Britain & Ireland has sold its 50% stake in the joint venture it created with Hongkong and Shanghai Hotels (HSH) for the development of the first Peninsula-branded hotel in London for £107.5 million, giving HSH full ownership of the project, which received planning permission at the end of 2015. The development, on Hyde Park Corner, will replace the site’s existing 1960s’ office blocks and will include the 190-room hotel and spa, 24-28 residential apartments and retail and food and beverage outlets. Construction is due to start in 2017 and the hotel is scheduled to open in 2021. Grosvenor will retain the freehold of the site and as landlord will receive a fixed rent from the hotel.


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