Courtyard by Marriott Waikiki Beach acquired for $75.3 Million

RLJ Lodging Trust today announced that it acquired the long-term leasehold interest in the 399-room Courtyard by Marriott Waikiki Beach (the “Hotel”) for a purchase price of $75.3 million, or approximately $189,000 per key. The purchase price represents a forward capitalization rate of approximately 7.8% based on the Hotel’s projected 2014 net operating income. The Company purchased this asset with cash available on its balance sheet.

“We are excited to increase our presence in the west and expand our geographic footprint into another gateway market,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “The Hotel’s strong brand affiliation and prime location in Waikiki will allow us to capitalize on the strong lodging fundamentals in Oahu.”

The Hotel is located in Honolulu, on the Hawaiian island of Oahu. Honolulu serves as a major gateway for travelers from the Pacific Rim and is ranked as the fourth highest port of entry for international travelers to the U.S., behind only New York City, Miami, and Los Angeles. In 2012, visitor arrivals and spending exceeded historical 2006 and 2007 peak levels. According to the Department of Business, Economic Development & Tourism, in 2012 visitor arrivals increased 9.6% and visitor spending increased 18.5% over prior year. Strong demand from Asia and the South Pacific region are projected to drive further growth for the market.

As one of the leading hotel markets in the U.S. and a major tourist destination, the Oahu market recorded revenue per available room (“RevPAR”) growth of 16.7% in 2012, which was the highest among the top 25 U.S. lodging markets according to Smith Travel Research. Year-to-date through April 2013, the strong growth continued as RevPAR increased 17.9% over the same time period in 2012. The Hotel’s RevPAR, which represents more than a 40% premium to the Company’s 2012 pro forma RevPAR, will be among the Company’s Top 10 hotels and further enhance the composition of the portfolio.

The Hotel’s prime location in the world famous neighborhood of Waikiki is in close proximity to the most visited tourist attractions in the area and various cultural and entertainment options. The Company expects that the Hotel will benefit from the positive momentum in the leisure and hospitality sectors as well as from demand generated by all four branches of the U.S. military, which have a significant presence on the island.

The Waikiki submarket is currently underrepresented by Marriott branded hotels. The Company expects that the Hotel’s affiliation with Marriott’s strong reservation system and guest loyalty program, as well as its proximity to the most visited attractions in the area, will benefit the asset and position it for strong growth. With limited supply and robust demand, the Company expects that this Hotel has significant upside and is well positioned to outperform.

With the addition of this asset, the Company now owns 149 properties, comprised of 148 hotels with more than 22,300 rooms and one planned hotel conversion, located in 22 states and the District of Columbia.

View the original article here

Ritz-Carlton to cease managing Ritz-Carlton Hotel, Palm Beach

The Ritz-Carlton Hotel Company, L.L.C. said today it would cease managing The Ritz-Carlton Hotel, Palm Beach as of July 1. 

The owner of the property will be renaming and managing the hotel.  Effective July 1, no Ritz-Carlton Rewards or Marriott Rewards points can be earned or redeemed at the property.  In connection with its departure, Ritz-Carlton also said that it has filed a multi-million dollar counterclaim against the owner, RC/PB Inc., for breach of contract.

Ritz-Carlton noted that the court in the pending litigation filed by RC/PB permitted the owner to take over the hotel even as it dismissed the vast majority of the owner’s claims, but that the court also stated that such action would subject the owner to breach of contract damages claims.  Ritz-Carlton categorically refuted the owner’s claims relative to the management of the hotel, saying that for the 22 years Ritz-Carlton has managed the hotel it has always passed the contractual performance test.  In fact, under Ritz-Carlton’s management, the hotel was forecasted to earn millions of dollars in net profit in 2013. 

Ritz-Carlton has been an active and contributing member of the Palm Beach community, and has managed the Palm Beach hotel with distinction, in the process earning accolades from a range of trusted luxury travel experts, including AAA, Forbes, Travel + Leisure, Conde Nast Traveler, Spa Finder and US News and World Report.  The exemplary service and hospitality provided by the ladies and gentlemen of the The Ritz-Carlton have kept the company atop the J.D. Power and Associates Hotel Guest Satisfaction Study for Luxury Hotel Brands for three consecutive years.

The Ritz-Carlton continues to operate 9 hotels in Florida and is committed to Florida as a prime global destination.

View the original article here

Movenpick Jumeirah Beach impresses with a low environmental footprint

In line with Movenpick Hotels&Resorts’ philosophy to contribute to a positive future, Movenpick Hotel Jumeirah Beach in Dubai, U.A.E., identifies and promotes sustainable strategies. This luxury property impresses with a significantly low environmental footprint and an outstanding CSR program – all efforts were recently awarded Green Globe re-certification.

“We are delighted that we have been re-certified by Green Globe,” said Horst Walther-Jones, General Manager. “I can proudly say that Movenpick Hotel Jumeirah Beach is a very good example of a hotel dedicated to environmentally-sustainable tourism. This has been demonstrated through a variety of initiatives. Our business and our employees can really make a difference by reducing the environmental impact. We all share a great pride in our property, and this is reflected in the concerns we all have in making sure we operate at the highest environmental standards possible.”

The Movenpick Hotel Jumeirah Beach supports a number of charitable programs, contributing to a positive community and environment. Earlier this year, on March 7, Dubai-based Greenfield Community School celebrated their International Day, where the property was presented showcasing a popular variety of Movenpick chocolates and Swiss treats. Executive Chef Stefan Borchart and his team conduct workshops at local schools on a regular basis, sharing tips and explaining the benefits of healthy food to the young students.

Earth Hour, Earth Day, and World Environment Day are observed regularly, with special activities promoting awareness. United in the effort to creating a sustainable future for the planet, all lights were switched off at the Movenpick Hotel Jumeirah Beach on March 23 for one hour.

Under the guidance of Mr. Walther-Jones, and true to their motto, “Serving our Community is as important as serving our Guests,” the entire hotel team participates in the “Safe&Sound Pink Walkathon” every year. This event is part of the BurJuman’s Safe&Sound campaign, which is one of the most extensive breast cancer awareness programs in the Middle East. The hotel typically arranges to pay the registration fee for all participants, which will go towards further education and providing free mammograms and patient care for women in the U.A.E.

The audit for the Movenpick Hotel Jumeirah Beach was conducted by Farnek Avireal, lead sustainability consultancy in the MENA region and a preferred Green Globe Partner.

View the original article here