Across the world, distressed hotels are creating new opportunities for keen-eyed investors. The signs are visible globally. In Thailand, Destination Capital, a Bangkok-based private equity real estate investment and asset management company, is set to join forces with its capital partners to acquire hotel assets in the Asia Pacific region.
They are drawing up a game plan of acquiring strategic hotel assets and adding value through renovation, asset management, and rebranding with a global hotel brand to boost financial returns.
In the US, it is being estimated that 20 % of hotels have debt held in commercial mortgage-backed securities (CMBS). Blackstone, one of the world’s largest real estate investors, is said to be scouting for struggling hotel properties for investments, globally. After raising $20 billion during the second quarter, Blackstone now has a record $156 billion in “dry powder” capital to deploy for investments.
Internationally, Accor has confirmed it was closing in on a deal to take over the contracts of about 100 Travelodge hotels after an ongoing dispute over rent payments at the budget group. “The deal would involve Accor taking a 10% stake in a new special purpose vehicle that would be majority-owned by the Travelodge landlords. The vehicle, to be named Ago, would issue new 25-year leases to the hotel owners, who would pay franchise fees to Accor for use of its Ibis brand,” reported the Financial Times.
India’s distressed hotel landscape
This story is from the August 2020 edition of Hotelier India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2020 edition of Hotelier India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Eight Appeal
In conversation with Haninder Sachdeva, Managing Director and CEO, Eight Continents Hotels & Resorts, the promising, young brand on the hotel scene...
The Bleisure Bloom
What's shaping the future of business and leisure travel?
Lock & Key
All about choosing the right digital lock system in hotels...
Art Attack
Asilo, the rooftop lounge bar at The Westin Pune, is a beautiful oasis in the city.
Travel Tech
Several new technological innovations are now being employed to make travel hassle-free and this is a win-win for all stakeholders.
A 'Wild' Escape
The onset of summer is the best time to plan a holiday in the wild as this is the best season to spot wild animals.
Trail Mixes
A new favourite addition to the healthy snacking portfolio...
"The Ambanis specified a preference for eco-friendly accommodation!"
Bhavik Sheth, COO of Evoke Experiences, shares what went behind creating the most luxurious and eclectic tents in the grandest pre-wed festivities of the year...
"Our vision is a perfect fit for India!"
Larry Cuculic, President and Chief Executive Officer, BWH Hotels, and Ron Pohl, President of International Operations and World Hotels, give us a glimpse into why they think so...
Three to TANGO
From an Unlikely to an Unstoppable partnership, chronicling the success story of Hotelivate.