AHIP 12-hotel deal part of REIT’s realignment strategy

Vancouver-based REIT American Hotel Income Properties completed its sale of 45 economy assets and agreed to purchase 12 premium-branded ones. The move aligns the company’s structure closer to U.S. REITs and better presents itself to investors, executives said. VANCOUVER, British Columbia—Canadian real estate investment fund American Hotel Income Properties on 28 November agreed to acquire a portfolio of 12 premium-branded hotels in the U.S. for $191 million. The move sees the Vancouver-based AHIP move further up the segment ladder and concentrate on higher margins and yielding. With this announcement, the company also said it closed its previously announced sale of a 45-hotel economy portfolio to an affiliate of Vukota Capital Management for total gross proceeds of $215.5 million. The latest deal caps off a period of restructuring for AHIP. In April 2018, the company transferred management of all of its portfolio, at the time 115 hotels, to Texas-based Aimbridge Hospitality, as part of its strategy to become a pure owner. Then in July 2019, AHIP agreed to the deal with VCM.  The VCM deal, which closed on 28 November, saw AHIP exit the economy segment and funded its latest acquisition, which comprises 12 hotels and 1,203 rooms in the U.S., in Michigan, Minnesota, North Dakota, Pennsylvania and Texas. The largest hotel by room count is the 120-room Courtyard St. Paul Woodbury in Minneapolis. Seven assets are managed by Marriott International, four by Hilton and one by InterContinental Hotels & Resorts. Aimbridge merged with Interstate Hotels & Resorts on 25 October, although between the AHIP-Aimbridge deal and the Aimbridge-Interstate merger, AHIP renegotiated its management-fee structure with Aimbridge. In an investor update released in coordination with the agreed-to buy and completed sale, AHIP said the new management-fee structure will “strengthen (its) margins, cash flow and growth potential over the next several years.” Expected to close by the end of the month, the 12-hotel buy now gives AHIP 79 assets and 8,887 rooms in its premium-brand portfolio. Jamie Kokoska, AHIP’s director of investor relations, said the completion of the sale of its 45 economy hotels alongside its new acquisition has transformed AHIP into a “pure-play” premium-branded hotel company. The 12 hotels have been acquired at an “approximate 8% capitalization rate” and, with all built in the last five years, at below replacement cost, she said. “By selling our economy-lodging portfolio, our business has become more streamlined and efficient and allows us to focus solely on driving growth from our growing portfolio of premium-branded hotels,” Kokoska said. “We believe these transactions will also better align our company with other publicly traded U.S. hotel REITs and hopefully make our business more easy to understand for investors. Ultimately, we hope our trading multiples will more similarly reflect those of the broader hotel REIT sector,” she said. Segment shift AHIP CEO John O’Neill said in the news release announcing the deal that the “mostly all-suite” deal is the final chapter that completes “a significant component of our 2019 capital recycling program.” Kokoska said Aimbridge will likewise manage the new portfolio. Troy MacLean, equity research analyst at Toronto-based BMO Capital Markets, agreed the deal moves AHIP farther up the segment scale. “The sale and new purchase is less about a price-point strategy than about becoming more of a pure play. They like select-service hotels,” MacLean said. The hotel stock, both the bought and the sold assets, also is different in market and format, MacLean said, with the latest deal being likely an economically safer platform and one providing higher margins. “The rail hotels were in tertiary markets with basically one buyer. When the rail business declined, they really suffered,” MacLean said, referring to the assets in the VCM deal and their associated rail crew-lodging contracts that were also transferred. Kokoska said the new buy, due to close by the end of the year, continues AHIP’s strategic decision to focus on higher-quality, select-service premium-branded hotels that inherently have higher average daily rates. The focus will remain primarily on the upper midscale to upper-upscale chain scales, mostly with brands offering suites or extended-stay accommodations located mostly in metropolitan secondary markets outside of the Top 25 in the U.S. “Another target is to be in markets near multiple demand generators such as hospitals, universities, business parks and stadiums. We believe these kinds of hotels have the ability to provide strong, sustainable returns, while also being defensive in changing market conditions,” Kokoska said. “These kinds of hotels do often generate higher margins due to less frequent guestroom turnover and lower operating expenses,” she said. As of 27 November, AHIP’s market capitalization stood at $505 million Canadian dollars ($380.2 million), according to the investor update. That update also showed the revenue-per-available-room rise across AHIP’s portfolio, even with inflation being taken into account, with that metric in 2013, when its assets were all in the economy segment, being $46.15; in September of this year, excluding the 45-asset economy-segment sale, being $76.80, and for just the 12 agreed-to hotels—although the rest of the portfolio is not included in the calculation—$97. The average room count also has increased in the last six years from 80 to 115, with the 12 new hotels averaging 100 rooms. Despite being listed on the Toronto Stock Exchange, Kokoska said AHIP still has no immediate plans to open its wallet for Canadian assets.

American Hotel Income Properties Acquires 12 Hotels for $191.0 Million

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U) announced that it has reached a definitive agreement to acquire a portfolio of 12 well-maintained Premium Branded hotels for $191.0 million excluding closing and post-closing adjustments. The 12 hotels, totaling 1,203 guestrooms, are located across the United States and will significantly strengthen AHIP's geographic presence in Texas and the Midwest. The properties have all been constructed within the past five years, are stabilized and have minimal brand mandated property improvement plans. The transaction is expected to close during December 2019, at which point AHIP's portfolio will consist of 79 Premium Branded hotels, representing 8,887 total guestrooms, that are licensed primarily with Marriott, Hilton and IHG. "We're very excited to complete a significant component of our 2019 capital recycling program by adding these 12 high-quality, mostly all-suite focused, recently built select-service hotels to our portfolio of Premium Branded hotels," said John O'Neill, CEO.  "We're especially pleased with the acquisition cap rate and short closing timeline for this transaction, as the cash flow from these newer hotels will minimize the dilution from the sale of the Economy Lodging portfolio.  With no major capital renovations required, the hotels in this portfolio should perform without any income displacement. In addition, the improved debt financing terms we've secured for this transaction, including interest only payments at lower fixed interest rates, will meaningfully reduce our financing costs and drive higher cash flows.  We continue to believe higher-quality properties and attractive financing terms will drive better risk-adjusted FFO accretion and create value for our unitholders over the long term." AHIP intends to use net proceeds from the sale of its Economy Lodging portfolio, alongside an approximately $105 million new fixed-rate term loan to finance the Acquisition.  Specifically, the facility will have a five-year term with fixed interest rates less than 4%, secured by the 12 new hotel properties.  Exact debt terms will be confirmed at the time the Acquisition closes. The hotels are being acquired for approximately $158,800 per key, which is below AHIP's estimate of replacement cost. The 12 hotels in the Acquisition include six Marriott branded properties (two Courtyards, two Residence Inns, one Fairfield Inn & Suites and one TownePlace property), five Hilton branded properties (three Home2 Suites, one Hampton Inn and one Homewood Suites), and one IHG branded property (a Staybridge Suites).  Eight of the twelve hotels are all-suite products and all of these brands are complementary to AHIP's existing hotel portfolio of select-service, premium branded, upper-midscale to upper-upscale properties.  Importantly, all of the properties are already managed by Aimbridge Hospitality – AHIP's exclusive hotel manager, which should ensure a seamless transition into AHIP's portfolio. The Acquisition also further diversifies AHIP's geographic markets, strengthening the Company's presence in markets outside of the U.S. East Coast.  Six of the new hotels are located in Texas, while the remainder are located in the Midwest (Michigan, Minnesota, North Dakota and Pennsylvania).  In line with AHIP's long-term strategy, all 12 hotels are located in metropolitan secondary markets that benefit from multiple demand generators and industries to support the local economies. 

Sharm El-Sheikh’s tourism industry can recover with the right marketing

GlobalData has reported that Egypt’s Sharm El Sheikh’s tourism industry can thrive with the right marketing. Following the lifting of the four-year flight ban on the resort location, companies pounced to operate in Sharm El-Sheikh said GlobalData. Particularly with some good marketing to UK visitors, the tourism economy in the area could soar. According to a GlobalData survey, 63% of UK respondents are unlikely to change their plans because of a terrorist attack or political event. This compares to a global average of 54%, showing that UK residents tend to be relatively relaxed about travel threats. GlobalData’s travel and tourism analyst, Laura Beaton, commented: “Just hours after the ban was lifted, companies were jumping at the chance to resume operations. TUI has already begun selling holidays for 2020 and easyJet will launch flights to Egypt for the first time. In addition, Olympic Hotels will offer hotels previously exclusive to Thomas Cook, which will boost business for the area and mitigate some of the issues that may have occurred after the collapse of Thomas Cook.” However, officials from the company do believe that the area must work on marketing its attractive diving opportunities. Diving company Regaldive for example is offering two days free if a dive package is booked within a certain timeframe. Beaton added: “This should be leveraged by Egypt and will prove helpful in restoring perceptions among tourists. Scubatravel.co.uk, which compiles a list of popular dive spots according to review from divers, puts Thistlegorm in the Egyptian Red Sea as the fourth most popular location in the world. The Shark and Yolanda Reef in the Egyptian Red Sea comes in at fifth place for divers looking for a more natural adventure.” Beaton continued: “Sharm El-Sheikh will quickly bounce back because it is such an iconic destination for UK travellers. Holiday-makers have been circumventing the ban by flying indirectly or traveling across land from other parts of Egypt. Now that connectivity is restored, UK travelers will return much faster.”

Espresso Day

The voodoo priest and all his powders were as nothing compared to espresso, cappuccino, and mocha, which are stronger than all the religions of the world combined, and perhaps stronger than the human soul itself. Mark Helprin Rich and powerful, espresso is a nitro-boost to your day and a go-to for coffee drinkers looking for a way to get through those long hard days and nights. It is a refinement of coffee, distilled down to its most potent elements and delivered in special cups that should have a warning label that reads “High Vibration and Caffeine Jitters Ahead”. Espresso day celebrates the history of this delicious and powerful solution to an otherwise dreary day. History Of Espresso Day In Turin, in 1884 an incredible new innovation was developed that would change the way work would be done for all of history. No more would tired laborers have to rely on pure willpower to get them through the day or lean on the watered-down attempt at caffeination that was normal coffee and tea. Instead, thanks to the innovative methods of Angelo Moriondo coffee had seen a new age of enlightenment, as his new machine found a way to separately control the passing of steam and water through the coffee. This innovation made it possible to extract the fullest possible potential from the humble coffee bean. Espresso Day was created to honor this invention and the wonderful man who made it all possible. True, the machine has undergone multiple upgrades and innovations since then, with homemade espresso machines now being available, and the latte is now one of the most popular methods of imbibing this drink. From Turin, Italy this beverage spread throughout the world, earning a place of prominence in Europe, the USA, and eventually the world at large. How To Celebrate Espresso Day Celebrating Espresso Day is as simple as skipping on down to your local caffenation station, be it a Starbucks, Tim Horton’s, or whatever your local flavor of coffee shop is. Order yourself the strongest drink on the menu, a triple-shot espresso if they have them, and raise a small ceramic glass of high-powered octane the those in attendance. Toast Angelo Moriondo and his works, and let all who will listen know that it is he who drives the modern worker and increases production. Then stop on the way home and buy yourself your own personal espresso machine, because weekends need coffee too.

Damac tops out Paramount Tower Hotel and Residences

Property features one of Dubai’s highest infinity pools on the 64th level, at 235 metres high Damac Properties’ has topped out its Paramount Tower Hotel and Residences, a 64-storey mixed-use development property on Sheikh Zayed Road. The project, features one of Dubai’s highest infinity pools on the 64th level. Currently, more than 80% of the tower’s external façade and casting work of the infinity pool has been completed. The design and décor of the hotel rooms comprises features such as in-room home theatre systems and access to a library of Paramount films. The residences feature multiple bedrooms and spacious interiors with separate dining and living areas. Speaking about the topping out, Niall McLoughlin, senior vice president, DAMAC Properties, said, “The topping out of Paramount Tower Hotel and Residences with one of Dubai’s highest infinity pools overlooking Downtown Dubai is testament to our commitment to bringing the most differentiated living experiences to the region. We are thrilled with the progress on this project, which stands tall as a distinctive addition to Dubai’s iconic skyline. Our vision resonates with Dubai’s growing relevance as one of the world’s top tourist destinations.” In addition to the infinity pool, Paramount Tower Hotel and Residences features multiple floors of amenities such as restaurants and lounges, a rooftop terrace fitness and wellness centres, and a business centre, among others.

The most important tourist attractions of Iran: a Thai tourist

The Most Important Problems for Startup Companies in Tourism in Iran

The lack of a clear pathway for entrepreneurs in the area of e-business is currently against these companies and they are deprived of the benefits of start-ups advantages, HotelNews reports. Applicants to launch a startup in the tourism market cannot find a gateway to the market, which is the License of official authorities. The market is foggy for start-ups, as the government is also banned from supporting, monitoring and helping new businesses.

Database systems

A computerized file-keeping system, and the database itself is a repository of computerized data files. In the context of database management, data are stored and organized by fields and records A field (sometimes known as an attribute) is the single unit of information, such as the surname of a hotel employee. A record (also called a tuple) is a collection of related fields. Furthermore, a file (also known as a table) has multiple records that are pertained to a specific topic. Lastly, a database comprises all related files. In hospitality, databases support most business functions and applications. An advantage of database systems application to the hospitality industry is the personalization of products and services. The selective capability of a database system makes it easy for the hospitality practitioners to maintain a direct contact with customers.

Kimpton Hotel Palomar South Beach to open in Miami

Kimpton Hotel Palomar South Beach is set to welcome its first guests in late 2019. The chic property will be located in the heart of South Beach, a popular international and local destination in Miami Beach. It will be the boutique hotel company’s fifth in the Sunshine State, complementing its existing hotels in Miami Beach, Downtown Miami and Vero Beach. Altamarea Group, the New York restaurant Hospitality Group, will run the hotel’s food and beverage program, and bring its highly popular Osteria Morini brand from Soho to the Kimpton Palomar. “We’re thrilled to be opening our doors in South Beach this fall, and excited to partner with the Altamarea Group,” said Fernando Rivera, the property’s newly appointed general manager. “At the Palomar, guests will not only be surrounded by world-class restaurants, shopping and other great amenities, but they will also enjoy state-of-the-art design, technology, luxury and the unparalleled service that embodies the Kimpton ethos.” Located at the gateway of the locally loved Sunset Harbour neighbourhood, Kimpton Hotel Palomar South Beach is a sophisticated retreat just steps away from the city’s newest and most exciting restaurants, shops, wellness experiences and nightlife. Featuring striking design by Miami architect and designer Kobi Karp, Kimpton Hotel Palomar South Beach is set to become an iconic addition to the South Beach scene. Karp’s design takes its cues from the waterfront. The hotel spans five stories with 96 rooms surrounding a spacious central atrium. Meant to resemble the hull of a private luxury yacht lilted on its side, the lobby excites the senses with its custom-built light installations and is peppered with art displays, including light panels, abstracted shapes, and large format fabrics meant to resemble the ripples of the Atlantic Ocean. Guest rooms feature private balconies available for nearly every guest and design that is inspired by the oceanic environs.

Marriott International to debut St Regis hotel brand in Oman

The project is expected to bring 271 luxury rooms and 170 branded residences to Muscat Marriott International will debut the St Regis brand — St. Regis Al Mouj Muscat Resort — in Oman after it signed an agreement. The resort is expected to open in 2022. The 271-room resort will come up in Al Mouj Muscat and will include plans for 170 branded residential units, including a mix of apartments, penthouses and townhouses. The residences are also expected to be completed by 2022. “The signing of St. Regis in Oman is a natural progression for the brand’s portfolio, as the brand continues to become one of the most recognised and sought-after luxury hotel brands in the region,” said Alex Kyriakidis, president and managing director, Middle East & Africa for Marriott International. “We are thrilled to bring this significant project to Oman, especially to this strategic location in one of the most desired waterfront masterplans in the city of Muscat.” Guests are expected to have access to a portfolio of leisure amenities in the Al Mouj Muscat community, including a planned 360-berth marina with retail and dining options, as well as a clubhouse with watersport activities. Guests could be allowed to access the Al Mouj Golf – an 18-hole championship golf course, designed by Greg Norman. Plans for the resort also include a 1,100-square-metre ballroom for corporate gatherings, special events or weddings.

Airbnb introduces animal experiences Tuesday, 8th October 2019

Airbnb is unveiling Animal Experiences – a brand new category of Airbnb Experiences that allow people to better understand animals through caring, expert hosts and set a new standard for animal tourism. With 1,000 Experiences co-hosted by over 300 species and their human advocates, guests can now paddleboard with corgis, kayak with conservationists, learn alongside urban beekeepers or skateboard with a world record-winning bulldog! Airbnb Animal Experiences offers a fresh new way to connect with animals near and far, so that even busy urbanites can reconnect with the natural world through hiking with rescue dogs, chilling out with alpacas or cuddling cows. Guests will meet animals in places that allow for gentle observation and bring a sense of connection far beyond animal selfies or performances. For those seeking more adventure, guests can discover arctic foxes or even help rescue puppies lost within the Chernobyl Exclusion Zone. At Airbnb, we envision a world where everyone can belong anywhere. Today, we extend our passion for belonging beyond humankind, committing to protect the welfare of animals across any Experience that features them. Joining more than 40,000 Airbnb Experiences available across 1,000 cities worldwide, Airbnb Animal Experiences are underpinned by a new, industry-leading animal welfare policy, created in collaboration with World Animal Protection. Animals should be appreciated for their intrinsic value and this new animal welfare policy has been designed to ensure their wellbeing at all times. Ranging from afternoon tea with naughty sheep to multi-day safaris, Airbnb Animal Experiences are hosted by caring experts as an antidote to typical tourist attractions that are notorious for ethical concerns. You will never find an Airbnb Experience where you can kiss a dolphin or ride an elephant. Beyond helping people get to better understand animals and meet them in a new way, over 100 Airbnb Animal Experiences are Social Impact Experiences, cementing our commitment to animals in the long-term by directing all proceeds from bookings to nonprofits. Supporting causes such as conservation, animal rescue, and veterinary care, these Experiences help scale impact, foster empathy and include caring for rescued horses, seeing released macaws and spending a day with donkeys. Other notable Airbnb Animal Experiences will come to life both on and offline through an exclusive partnership with The Dodo, the leading brand for mobile animal content in the U.S. and one of the world’s most-engaged media brands on social. Airbnb Animal Policy Highlights We are the first major booking platform to offer a dedicated category of animal experiences underpinned by a progressive new animal welfare policy, created in conjunction with World Animal Protection. New highlights include: Wild animals: there should be no direct contact including, but not limited to, petting, feeding, or riding animals Working animals: maximum one rider and never more than 20% of the animal’s weight, never to be overworked Marine mammals: should never be in captivity for entertainment Broader host business: should not feature elephant rides, big cat interactions, illegal wildlife trade, sporting events such as canned and trophy hunting, animals performing for entertainment Responsible travel: no wild animals as selfie props or any negative training techniques World Animal Protection will continue working with Airbnb on its approach to animal welfare based on the latest evidence and research. ANIMAL EXPERIENCES HIGHLIGHTS: Tea with Naughty Sheep (Loch Lomond, United Kingdom) Meet the Dogs of Chernobyl (Slavutych, Ukraine) Discover Arctic Foxes (Sudavik, Iceland) New Zealand Getaway and Horseplay (Auckland, New Zealand) Gibbon Research Assistant Experience (Phuket, Thailand) Urban Rooftop Beekeeping (Hamilton, Canada) Butterflies and Caterpillars Oh My! (Columbus, Ohio) Meet Life-Saving Animals (Siem Reap, Cambodia) See Released Macaws (Nosara, Costa Rica) Ultimate Cape Town Birding (Cape Town, South Africa) Wild Brooklyn Parrot Safari (Brooklyn, New York) Go on a Safari with a Maasai Guide (Nakuru, Kenya) Hike Runyon Canyon with a Rescue Dog (Los Angeles, CA) A Day in a Gaucho’s Life in the Andes (Mendoza, Argentina)

Accor, GFH partner to open Mama Shelter hotel in Bahrain The property will comprise 160 rooms

Hospitality group Accor and GFH Financial Group have signed a partnership to manage a Mama Shelter brand hotel in Manama, Bahrain. According to the partnership, the project will also comprise a restaurant and a sea view rooftop pool. Set to open in 2020 in Manama, Mama Shelter Bahrain will be part of the waterfront location at GFH’s Harbour Row development within the US$1.5 billion Bahrain Financial Harbour project, as one of the Kingdom’s most prominent mixed-used projects. “Mama Shelter Bahrain is the first MAMA which will face the sea. The design has been thought out in two ways. Firstly, the relationship with the sea as it is a waterfront hotel. The second is to propose a lifestyle experience which refers to the nomadic aesthetic and the hospitality from the inner part of the region,” explained Benjamin El Doghaïli, head of MAMA’s Design Studio. The property will house 160 rooms, with design elements by MAMA’s Design Studio, led by Benjamin El Doghaïli. Each room features complimentary films and WiFi as well as a selection of products from the MAMA SKIN range of organic amenities. MAMA’s CEO, Jérémie Trigano said: “We discovered a beautiful site in the city of Manama on the banks of the Arabian Gulf and a modern, forward-thinking partner, GFH properties, brought to us by the Accor team. The chemistry was there and we therefore decided to bring the MAMA magic to the country, with the hope of opening in 2020”. Commenting on the project, Mark Willis, CEO Accor Middle East & Africa said: “Our partnership with GFH continues to flourish with the signing of Mama Shelter Bahrain as well the debut of the Raffles brand, which was announced earlier in the month. Accor believes that Mama Shelter marks a definitive first in lifestyle hotels in Manama and has the potential to be a global showcase for this dynamic brand.”