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An ex-Holiday Inn Executive is Behind a $500 Million Plan to Jazz Up Troubled Hotels

Ken Hamlet, the former CEO of Holiday Inn, intends to use a $500 million war chest to acquire limited-service hotels (those without facilities such as a restaurant or spa) and reposition them as properties with a more upscale customer experience.

Consider it adding more of the Four Seasons experience to roadside hotels, as Hamlet put it.

He was CEO of Holiday Inn for nine years in the 1980s and early 1990s, and during that time the business was purchased by IHG and introduced or acquired brands such as Embassy Suites, Crowne Plaza, Hampton Inn, and Harrah's. Rather than starting his fund, Hamlet joined Olive Tree Hotels & Resorts, a hotel investment group where he now serves as CEO, to pursue deals.

“I began to think of maybe now is a very good time to take advantage of getting back into the hotel industry and purchasing distressed assets or buying assets that were well-located, well-branded, relatively well-managed, and that were being distressed and only needed additional capital to get them up to 2021 standards,” he said this week.

The only thing is that there is a litany of hotel investors drooling about hotel investment prospects that did not come true before the pandemic.

Investment firms such as CGI Merchant Group, in collaboration with New York Yankees baseball legend Alex Rodriguez, and Bainbridge DXS are also scouring the market for hotel acquisitions of hundreds of millions of dollars in the coming years. Dreamscape Cos., owner of the Rio All-Suite Hotel & Casino in Las Vegas, has more than $1 billion in cash to purchase hotels, including troubled business-transient and convention-focused properties.

Olive Tree's capital distinguishes itself by concentrating on limited-service hotels in a mix of the 75 major U.S. cities as well as some secondary and tertiary markets such as Las Cruces, New Mexico. As long as there is a nearby demand driver, such as a hospital, university, or office park, the company can seek a deal. The majority of buyers are looking for troubled hotels in metropolitan markets or resorts in drive-to and leisure destinations.

Olive Tree intends to upgrade its guest rooms with more innovative features, such as automated check-ins and co-working-inspired workspaces in public areas. But, in addition to the technology, Hamlet desires enhanced client support, such as staffers adding personal touches to the guest experience, such as a bottle of wine or glass of champagne delivered to a room or hors d'oeuvres and chocolate bars in the lobby.

The move is reminiscent of how Holiday Inn became a brand. Kemmons Wilson established the roadside motel business in the early 1950s after becoming dissatisfied with the choices offered on a road trip between Memphis, Tenn., and Washington, D.C.

He set out to fix it because there was no consistency or quality in the accommodation experience. Olive Tree intends to replicate the success of existing limited-service hotels that are underperforming.

Many of Olive Tree's acquisitions would be branded by major companies such as Marriott, Hilton, Hyatt, and IHG. However, the company is not opposed to maintaining property independence or even launching its brand.

It is unclear when any of those acquisition goals will become available. Olive Tree reportedly has one hotel under contract and another "in the works."

Due to a mix of bank forbearance on mortgages and several rounds of federal stimulus by offerings such as the Paycheck Protection Program of forgivable small business loans, there haven't been as many distressed hotel properties exchanged throughout the last year. The Olive Tree team does not anticipate having to wait much longer.

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Ennismore and Shivom LLC Announces Signing a New Mama Shelter in LA

ENNISMORE | September 20, 2023

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Virgin Voyages Close $550M Fundraise Led by Ares Management

Virgin Voyages | September 08, 2023

Virgin Voyages announced a $550 million funding round led by Ares Management for global expansion. Founder Tom McAlpin transitions to Chairman of the Board, while Nirmal Saverimuttu takes over as CEO, bringing extensive experience from Virgin Voyages' early days. Virgin Voyages looks forward to continued success and collaboration with investors, including Ares Management, to drive future growth and innovation. Virgin Voyages, the award-winning cruise brand backed by Richard Branson's Virgin Group, has announced the completion of a $550 million fundraise led by Ares Management's Private Equity Group. This funding, including contributions from existing investors such as Virgin Group and Bain Capital, is poised to propel Virgin Voyages into international markets while enhancing the overall customer experience. Partner and Co-Portfolio Manager of Special Opportunities in the Ares Private Equity Group, Aaron Rosen, remarked, With this new investment alongside our partners at Virgin Group and Bain Capital, we believe the company is on strong footing to capitalize on its differentiated product and value proposition in the growing cruise industry. [Source - Cision PR Newswire] Established as a leading player in the industry, Virgin Voyages has swiftly gained recognition and accolades with a fleet serving various destinations and recent wins like topping the mega-ship category in Travel + Leisure's 2023 World's Best Awards and sweeping all five cruise categories in the 2023 Cruise Critic Cruisers' Choice Awards. Alongside this development, Tom McAlpin, the founding CEO, is transitioning to the role of Chairman of the Board. Nirmal Saverimuttu is taking the reins as the new Chief Executive Officer, having formerly served as President and Chief Experience Officer. In addition, Nirmal Saverimuttu has been a foundational figure at Virgin Voyages since 2014, when he joined as Chief Commercial Officer after securing initial investments from the Virgin Group. His role expanded in 2021 to President and Chief Experience Officer, making him well-prepared to guide the brand into its next phase of growth and innovation. Nirmal Saverimuttu, CEO of Virgin Voyages, said, I want to send our deepest thanks, on behalf of all our Crew and the Board, to Tom for his leadership and passion for the business. We are so grateful for all he has done and are thrilled to continue to partner with him as our Chairman. [Source – Cision PR Newswire] Virgin Voyages is a trusted brand due to its crew's dedication and passion for offering remarkable experiences for its guests. Nirmal also expressed his anticipation of collaborating with the Ares team and Virgin Voyages' current investors to execute growth and expansion plans as the company contemplates its promising future.

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United Improves Travel Experience For Customers Who Use Personal Wheelchairs

PR Newswire | October 06, 2023

United Airlines today announced new technologies and policies to improve the travel experience for customers who use a wheelchair, including a new digital filter on united.com that helps determine which aircraft can accommodate different sized chairs, and refunding the fare difference if a higher-fare flight is needed to accommodate a specific wheelchair size. United expects to launch these new tools early next year. "By offering customers an easy way to know if their personal wheelchair fits on a particular airplane, we can give them the peace of mind they deserve when they fly with us," said Linda Jojo, Executive Vice President and Chief Customer Officer for United. "Plus, collecting this information ahead of time ensures our team can handle these special items with proper care and attention." New Flight Filter and Fare Reimbursement The new flight filter on united.com will enable customers to enter the unique dimensions of their personal wheelchair as part of the flight search. 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Airport Experience Improvement Program Later this year United will begin a six-month pilot program at George Bush Houston Intercontinental Airport to explore ways to better accommodate customers in the unlikely event their wheelchair was damaged or delayed while traveling. The program will focus on the timeframe between a customer's arrival and when United returns the wheelchair or provides an appropriate loaner wheelchair if the original is damaged. United will collaborate with its Accessible Travel Advisory Board to explore several initiatives aimed at improving the airport experience during this challenging period, including providing specialized seating onsite and reimbursing the customer for transportation expenses should they choose to wait at a location other than the airport. 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Through Bridge, United's Business Resource Group for people of all abilities, employees help create a workplace environment where all can strive to achieve their maximum potential and support our commitment to being an ally for customers with disabilities. For the eighth-straight year, United was recognized as a Best Place to Work for Disability Inclusion and earned a top score on the Disability Equality Index benchmarking tool, a joint initiative of the American Association of People with Disabilities and Disability:IN, to advance the inclusion of people with disabilities. About United At United, Good Leads The WaySM. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

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Ennismore and Shivom LLC Announces Signing a New Mama Shelter in LA

ENNISMORE | September 20, 2023

Ennismore and Shivom LLC to Launch Mama Shelter Downtown LA in 2026, the Second of Its Kind in the City: Ennismore and its partner Shivom LLC are set to open Mama Shelter Downtown LA in 2026, following the success of Mama Shelter LA in 2015. Mama Shelter Downtown LA, housed in the transformed Mart South Building in Downtown LA, will offer 149 keys, including 145 standard rooms and four suites, known for its lively design, exceptional dining, and entertainment. Guests can enjoy three lively F&B outlets, including a ground-floor all-day dining restaurant and café, a rooftop bar and terrace with city views, an on-site fitness center, and a parking garage. Positioned in the heart of Los Angeles' Fashion District, the hotel provides convenient access to over 4,000 retailers, local and national restaurants, iconic venues like the California Market Center, and nearby shopping corridors, enhancing the guest experience in the entertainment capital. Ennismore, a creative hospitality company, and its partner Shivom LLC have announced the forthcoming Mama Shelter Downtown LA. This venture, set to launch in 2026, marks the second establishment of the popular Mama Shelter brand within the city, following the successful debut of Mama Shelter LA in May 2015. The new Mama Shelter, situated within the transformed Mart South Building in Downtown LA, is poised to offer a dynamic and immersive hospitality experience. Boasting 149 keys, including 145 standard rooms and four suites, it will embody Mama Shelter's signature style, combining vivacious design with exceptional dining and entertainment options. Cédric Gobilliard, Head of Central & Southern Europe and COO of Ennismore, commented, "We are thrilled to be opening a second Mama Shelter in LA. Los Angeles is a place to live life to the fullest, carrying so many fundamental values of the Mama brand, including her irreverent, popular, sassy and sexy personality; which fits perfectly with the glamour of LA. We look forward to bringing Mama's spirit to the city again with partner Shivom LLC." [Source – Cision PR Newswrire] Mama Shelter Downtown LA will offer three festive F&B outlets to party and play, including an all-day dining restaurant and café on the ground floor, as well as a rooftop bar and terrace with city views. Guests at the hotel will also have access to and use an on-site fitness centre and parking garage. Mama's exuberant interior decorations, homemade, high-quality menus and year-round happenings have become a staple in every one of the destinations. Guests will find all the design elements that distinguish a Mama Shelter, including graffiti carpets and ceilings, comfortable chairs, cartoon masks and one-of-a-kind decorations that reflect Mama's personality, signature food, and Mama nights to get the party started. As the world's entertainment capital, Los Angeles is an unrivaled cultural center with over 100 museums. Mama Shelter Downtown LA enjoys a prime location within the city's Fashion District, surrounded by more than 4,000 independently owned retailers and a thriving selection of local and national restaurants. Adjacent to the hotel, the California Market Center (CMC) stands as an iconic DTLA landmark, known for hosting premier events and epitomizing the city's rich fashion industry heritage. For those seeking retail therapy, Santee Alley, a shopping corridor, and the Los Angeles Flower District, the largest flower marketplace in the United States, are just a stroll away from Mama Shelter Downtown LA. This strategic positioning ensures that guests have access to an array of attractions and experiences within arm's reach, enriching their stay in this dynamic metropolis.

Read More

Travel Technology, Hospitality Management

Virgin Voyages Close $550M Fundraise Led by Ares Management

Virgin Voyages | September 08, 2023

Virgin Voyages announced a $550 million funding round led by Ares Management for global expansion. Founder Tom McAlpin transitions to Chairman of the Board, while Nirmal Saverimuttu takes over as CEO, bringing extensive experience from Virgin Voyages' early days. Virgin Voyages looks forward to continued success and collaboration with investors, including Ares Management, to drive future growth and innovation. Virgin Voyages, the award-winning cruise brand backed by Richard Branson's Virgin Group, has announced the completion of a $550 million fundraise led by Ares Management's Private Equity Group. This funding, including contributions from existing investors such as Virgin Group and Bain Capital, is poised to propel Virgin Voyages into international markets while enhancing the overall customer experience. Partner and Co-Portfolio Manager of Special Opportunities in the Ares Private Equity Group, Aaron Rosen, remarked, With this new investment alongside our partners at Virgin Group and Bain Capital, we believe the company is on strong footing to capitalize on its differentiated product and value proposition in the growing cruise industry. [Source - Cision PR Newswire] Established as a leading player in the industry, Virgin Voyages has swiftly gained recognition and accolades with a fleet serving various destinations and recent wins like topping the mega-ship category in Travel + Leisure's 2023 World's Best Awards and sweeping all five cruise categories in the 2023 Cruise Critic Cruisers' Choice Awards. Alongside this development, Tom McAlpin, the founding CEO, is transitioning to the role of Chairman of the Board. Nirmal Saverimuttu is taking the reins as the new Chief Executive Officer, having formerly served as President and Chief Experience Officer. In addition, Nirmal Saverimuttu has been a foundational figure at Virgin Voyages since 2014, when he joined as Chief Commercial Officer after securing initial investments from the Virgin Group. His role expanded in 2021 to President and Chief Experience Officer, making him well-prepared to guide the brand into its next phase of growth and innovation. Nirmal Saverimuttu, CEO of Virgin Voyages, said, I want to send our deepest thanks, on behalf of all our Crew and the Board, to Tom for his leadership and passion for the business. We are so grateful for all he has done and are thrilled to continue to partner with him as our Chairman. [Source – Cision PR Newswire] Virgin Voyages is a trusted brand due to its crew's dedication and passion for offering remarkable experiences for its guests. Nirmal also expressed his anticipation of collaborating with the Ares team and Virgin Voyages' current investors to execute growth and expansion plans as the company contemplates its promising future.

Read More

Travel Technology

United Improves Travel Experience For Customers Who Use Personal Wheelchairs

PR Newswire | October 06, 2023

United Airlines today announced new technologies and policies to improve the travel experience for customers who use a wheelchair, including a new digital filter on united.com that helps determine which aircraft can accommodate different sized chairs, and refunding the fare difference if a higher-fare flight is needed to accommodate a specific wheelchair size. United expects to launch these new tools early next year. "By offering customers an easy way to know if their personal wheelchair fits on a particular airplane, we can give them the peace of mind they deserve when they fly with us," said Linda Jojo, Executive Vice President and Chief Customer Officer for United. "Plus, collecting this information ahead of time ensures our team can handle these special items with proper care and attention." New Flight Filter and Fare Reimbursement The new flight filter on united.com will enable customers to enter the unique dimensions of their personal wheelchair as part of the flight search. The search results will then prioritize flight options on aircraft with cargo hold doors large enough to accommodate the wheelchair dimensions. The size of aircraft cargo hold doors varies, so some aircraft are better able than others to handle larger motorized wheelchairs, which must travel upright. If a customer is unable to take a preferred flight because their wheelchair will not fit through the aircraft's cargo door – and takes a United flight with a higher-fare that can accommodate their wheelchair on the same day and between the same origin and destination – the customer may seek a refund of the fare difference. Customers seeking a refund of the fare difference will need to follow United's process, including completing a short form after they've traveled. United will promptly ensure they receive the difference in fare after review. Airport Experience Improvement Program Later this year United will begin a six-month pilot program at George Bush Houston Intercontinental Airport to explore ways to better accommodate customers in the unlikely event their wheelchair was damaged or delayed while traveling. The program will focus on the timeframe between a customer's arrival and when United returns the wheelchair or provides an appropriate loaner wheelchair if the original is damaged. United will collaborate with its Accessible Travel Advisory Board to explore several initiatives aimed at improving the airport experience during this challenging period, including providing specialized seating onsite and reimbursing the customer for transportation expenses should they choose to wait at a location other than the airport. United entered an agreement earlier this month with the U.S. Department of Transportation to deliver these initiatives through a mutual commitment to increase accessibility and improve the travel experience for customers who require the use of a wheelchair. United carried about 150,000 wheelchairs in 2022. United's other recent measures to improve accessibility include: Providing ramp agents new mobile technology that indicates when a wheelchair is on a flight to ensure they are prepared to receive and load it. The technology also inhibits ramp agents from closing out a flight until they acknowledge that they've loaded all wheelchairs. In August, United became the first U.S. airline to add Braille to aircraft interiors, helping millions of travelers with visual disabilities more easily navigate the cabin independently. United expects to outfit its entire mainline fleet with Braille by the end of 2026. The United mobile app was recently redesigned to make it easier to use for people with visual disabilities with increased color contrast, more space between graphics and reordering how information is displayed and announced to better integrate with the screen reader technologies like VoiceOver and TalkBack. United's latest Inflight Seatback Entertainment screens offer a wide range of accessible features such as closed captioning, text-to-speech controls, magnification, explore-by-touch capabilities, audio-described movies, and adjustable and high-contrast text and color correction. As part of United Next, the airline's historic growth plan, the carrier expects to take delivery of about 700 new narrow and widebody aircraft by the end of 2032, all of which will include the latest in seatback screen entertainment options. Through Bridge, United's Business Resource Group for people of all abilities, employees help create a workplace environment where all can strive to achieve their maximum potential and support our commitment to being an ally for customers with disabilities. For the eighth-straight year, United was recognized as a Best Place to Work for Disability Inclusion and earned a top score on the Disability Equality Index benchmarking tool, a joint initiative of the American Association of People with Disabilities and Disability:IN, to advance the inclusion of people with disabilities. About United At United, Good Leads The WaySM. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

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