HOSPITALITY TRENDS

BRAEMAR HOTELS & RESORTS ANNOUNCES AGREEMENT TO ACQUIRE DORADO BEACH, A RITZ-CARLTON RESERVE

Braemar Hotels & Resorts Inc | December 28, 2021

BRAEMAR HOTELS & RESORTS
Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced it has entered into a definitive agreement to acquire the 96-room Dorado Beach, a Ritz-Carlton Reserve in Dorado, Puerto Rico (the "Property").  In addition, the Company is also acquiring the income stream attributable to fourteen luxury residential units adjacent to the Property that participate in a rental management program. The acquisition is expected to close on or prior to February 1, 2022, subject to certain customary closing conditions. Because the acquisition is subject to certain customary closing conditions, the Company can give no assurance that the transaction will be consummated by such date or at all. 

"The acquisition of Dorado Beach, a Ritz-Carlton Reserve is an opportunity for us to acquire one of the most iconic luxury assets in the Americas As the first Ritz-Carlton Reserve in the Americas and one of only five Ritz-Carlton Reserve properties worldwide, this unique property fits perfectly with our strategy of owning high RevPAR luxury hotels and resorts and further diversifies our portfolio." 

-Richard J. Stockton, Braemar's President and Chief Executive Officer.

With its premier beachfront location on the North coast of Puerto Rico, the Property is situated within Dorado Beach Resort, a 1,900-acre master planned community in one of the most sought after residential real estate markets in both Puerto Rico as well as the United States.  In addition to the amenities of the self-contained Dorado Beach community, the resort also benefits from its location within the town of Dorado.  Dorado is an upscale suburb of San Juan featuring many restaurants, retail outlets, and other amenities and leisure activities in the surrounding area.  Additionally, the town is 20 miles from Old San Juan and 22 miles from Luis Muñoz Marin International Airport, making it very accessible from the capital city.

Dorado Beach, a Ritz-Carlton Reserve was opened in 2012 and underwent an extensive $78 million renovation in 2018.  It has 96 luxurious and spacious rooms, including 12 suites, that average 1,288 sq. ft. in size. The hotel offers an array of amenities, including the award-winning, full-service, 5-acre Spa Botanico, and three food and beverage outlets (in addition to in-room dining).  The Property also boasts the acclaimed COA Restaurant, over 4,800 sq. ft. of meeting space, and an infinity pool with direct access to the beach. Additionally, the surrounding Dorado Beach residential development contains several other amenities that guests of the Ritz-Carlton Reserve can access during their stay, including:  2.5 miles of pristine beachfront, the TPC Dorado Beach Golf Club with two 18-hole Championship golf courses, a Tennis Center with five Har-Tru clay courts offering lessons and clinics for all skill levels, a state-of-the-art fitness center, the Encanto Pool, "The Watermill" – an expansive water park ideal for kids and families, three additional food and beverage outlets, as well as Dorado Farms – a 500-acre site including skeet shooting, equestrian center and culinary offerings – that is currently under construction.  While not included in the Property's fee simple collateral, the acquisition includes the income from 14 additional residential units, ranging in size from 2,200 to 6,600 sq. ft., which are part of a rental management program.

Dorado Beach, a Ritz-Carlton Reserve has been the recipient of the following awards:
  • AAA Five Diamond Award – 2016, 2017, 2019, 2020
  • Forbes Travel Guide Five-Star Award - Hotel – 2016, 2017, 2019, 2020
  • Forbes Travel Guide Five Star Award – Spa Botanico – 2017, 2020
  • Conde Nast Traveler - Reader's Choice Awards 2019 – Top 50 Resorts in the Caribbean - #1
  • Conde Nast Traveler - Reader's Choice Awards 2019 – Top 50 Resorts in the World - #14
  • Travel + Leisure – World's Best Award – 2016
  • US News & World Report – Best Caribbean Hotel - #1 - 2020
  • Golf Magazine – Top 100 Resorts in North America 2019/2020 – Best for Luxury - #5
  • Wine Enthusiast – Best 100 Restaurants – COA - 2019
The total consideration for the acquisition is $186.6 million ($1.7 million per key, inclusive of the residential units in the rental program). The acquisition will be funded with approximately $104 million of cash, six million shares of Common Stock, and the assumption of a $54 million mortgage loan.  No additional equity will be issued to fund the cash portion of the consideration.  The cash portion of the consideration will be funded from available excess cash.  The purchase price for Dorado Beach, a Ritz-Carlton Reserve represents, based on forecasted financial results for 2021, a capitalization rate of 9.8% on hotel net operating income of $18.2 million and a 10.2x hotel EBITDA multiple, according to the Company's preliminary estimates based on unaudited operating financial data provided by the seller. The Company expects to realize a stabilized yield of approximately 8% on its investment in the next three to five years.  On a trailing 12-month basis as of November 30, 2021, the Property achieved RevPAR of $1,129, with 57% occupancy and an average daily rate (ADR) of $1,968, according to unaudited operating financial data provided by the seller.

Spotlight

Travel video about destination Switzerland. We take you to the Berner Oberland and ride the Jungfrau Railway to the "Top of Europe". We walk to the source of the Rhine and travel by train to the top of the Rigi and the Pilatus. And along the way, we will, of course, show you much more of this fascinating country. Expoza Travel is taking you on a journey to the earth's most beautiful and fascinating places. Get inspiration and essentials with our travel guide videos and documentaries for your next trip, holiday, vacation or simply enjoy and get tips about all the beauty in the world.

Spotlight

Travel video about destination Switzerland. We take you to the Berner Oberland and ride the Jungfrau Railway to the "Top of Europe". We walk to the source of the Rhine and travel by train to the top of the Rigi and the Pilatus. And along the way, we will, of course, show you much more of this fascinating country. Expoza Travel is taking you on a journey to the earth's most beautiful and fascinating places. Get inspiration and essentials with our travel guide videos and documentaries for your next trip, holiday, vacation or simply enjoy and get tips about all the beauty in the world.

Related News

COMMERCIAL TRAVEL

Cubic Transportation Systems to Provide Next-Generation Fare Payment Technology to Port Authority of New York and New Jersey

Cubic Corporation | January 12, 2022

Cubic Corporation announced that its Cubic Transportation Systems (CTS) business division was awarded a second contract from the Port Authority of New York and New Jersey to continue providing and updating Port Authority Trans-Hudson’s (PATH’s) next-generation fare payment system. The investment will bring the next generation of contactless fare payment and collection technology, allowing riders to “tap and go” with their mobile devices and credit/debit cards.The PATH system connects New York and New Jersey. As part of the new contract, CTS will provide PATH with Cubic’s fare payment back office to centralize automated fare collection on conventional public transport modes. The back-office technology also offers passengers a single account to manage all their travel needs, transforming PATH into an account-based system similar to those utilized in Chicago, Brisbane, Australia and more. “PATH is continually searching for innovative ways to enhance the travel experience for all of our riders,With this new system, we’ll be adopting the most current and effective technology to advance that goal and make for a more seamless experience at the turnstile.” -PATH Director Clarelle DeGraffe. The first phase of the contract consisted of readiness efforts for the full implementation of the contactless payment system, such as gate upgrade kits and upgrades to the field network and infrastructure. Once complete, PATH’s convenient payment system will function similar to the Metropolitan Transportation Authority (MTA)’s OMNY system in New York and the Oyster system in London. These more flexible innovative features will ultimately enable PATH to more seamlessly integrate the system with mobility services such as bike share, scooter hire and tolling in the future. “Our aim is to be a global mobility technology provider that makes cities easier to navigate for locals, business travelers and tourists alike. This award showcases our proven track record to support a full range of needs for large transportation agencies. With the new additions to the fare payment system, PATH can finalize its implementation and continue to create a world-class, customer-friendly system for riders,” -Jeff Lowinger, president, CTS. The system will be fully deployed by early 2024 and will replace PATH’s legacy SmartLink payment system. To learn more, visit panynj.gov. About Cubic Corporation Cubic is a technology-driven, market-leading provider of integrated solutions that increase situational understanding for transportation, defense C4ISR, and training customers worldwide to decrease urban congestion and improve the militaries’ effectiveness and operational readiness. Our teams innovate to make a positive difference in people’s lives. We simplify their daily journeys. We promote mission success and safety for those who serve their nation. For more information about Cubic, please visit www.cubic.com or on Twitter @CubicCorp.

Read More

HOSPITALITY TRENDS

Ski Season’s Greetings! MCR Acquires Stoweflake Mountain Resort & Spa in Stowe, Vermont

MCR | January 03, 2022

Walking in a winter wonderland! MCR — the country’s 4th-largest hotel owner-operator — has acquired the 117-room Stoweflake Mountain Resort & Spa in Stowe, Vermont. Just downslope from Mount Mansfield, Vermont’s highest peak, Stoweflake Mountain Resort & Spa is your home base for four seasons of outdoor adventure. Come for the mountain biking, leaf-peeping, hiking and snowshoeing; stay for the spacious guestrooms (with fireplaces!), 50,000-square-foot spa, two pools and outdoor jacuzzi. Want to link up with friends and family? We’ve got a nine-hole golf course and 32 townhomes, too! Before catching the lifts at Stowe Mountain Resort this winter, carb up with a hearty breakfast at Charlie B’s, our on-site restaurant and pub serving a delicious buffet of eggs, home fries and oatmeal. We’ll be waiting for you at dinnertime with steaming French onion soup and lemon pepper-crusted salmon. Not a snow bunny? At Stoweflake, it’s always a spa day! The world-class spa offers 120 therapeutic treatments in 30 rooms plus a fully equipped salon. The true highlight is the Aqua Solarium, a 12-foot Hungarian mineral soaking pool with a cascading waterfall inspired by the area’s famous Bingham Falls! Get moving again at the sports and wellness center, which has Cybex fitness equipment, spinning and Pilates studios, tennis courts and a racquetball/squash court! Schedule a class with an instructor or splash in the indoor and outdoor pools (with a bubbling jacuzzi). With so much to do on the grounds, Stoweflake is the perfect place for an event. Gather your guests for a conference, wedding or family reunion — we have 25,000 square feet of meeting space in 17 rooms and outdoor terrain bordered by the Green Mountains. If you need more space than the resort’s guestrooms, opt for one of our 32 townhomes, each equipped with a full kitchen and private deck for cocoa-sipping and stargazing. Stoweflake’s location means off-property outings couldn’t be more convenient. Visit the Von Trapp family home (yes, the real-life Sound of Music clan, who settled in Stowe after leaving Germany!) or Alchemist Brewery. Take a short drive into town, where 80 boutiques, country stores and galleries — all twinkling with holiday lights — await. Stoweflake Mountain Resort & Spa is located at 1746 Mountain Road and features: 117 guestrooms and suites 32 one-, two- or three-bedroom townhome rentals A 50,000-square-foot spa and sports center with a waterfall and meditative garden Two tennis courts A racquetball and squash court An executive nine-hole, par-3 golf course Indoor and outdoor pools with a jacuzzi A 25,000-square-foot conference center with 17 meeting rooms Charlie B’s Restaurant & Pub Fast Wi-Fi On-site parking Reserve rooms by phone at (802) 253-2322 or online at stoweflake.com. About MCR 4th-largest hotel owner-operator in the United States $4.0 billion portfolio of 140 premium-branded hotels MCR operates 8 Marriott brands, 6 Hilton brands and a number of unflagged independent hotels 20,000 guestrooms across 37 states and 100 cities Founded in 2006 Offices in New York City, Dallas, Chicago and Richmond, Virginia 4,000 team members across the country Three-time recipient of the Marriott Partnership Circle Award, the highest honor Marriott presents to its owner and franchise partners Recipient of the Hilton Legacy Award for Top Performer For the TWA Hotel at New York’s JFK Airport, MCR won the Development of the Year (Full Service) Award at The Americas Lodging Investment Summit (ALIS), the Urban Land Institute New York Excellence in Hotel Development Award and the American Institute of Architects national Architecture Award, the highest honor given by the AIA Named one of Fast Company’s 10 Most Innovative Travel Companies of 2020 For more information, please visit mcrhotels.com

Read More

AIRLINES AND AIRPORTS

Decline in business travel could be permanent, analyst Beroe finds

Raleigh-Durham Airport Authority | August 10, 2021

Corporate business travel on airlines is expected to shrink by as much as 19 percent, and that decline could become permanent, an analysis from Raleigh-headquartered Beroe, Inc. found. “When travel restrictions were imposed worldwide, businesses replaced direct meetings with virtual ones to contain the pandemic’s spread. Many businesses adapted to virtual meetings and have realized that not all meetings must be in-person. Businesses have also realized huge cost savings on air travel spend,” said Anusree Mohan, senior analyst at Beroe, in a statement. “In the future, airline travel will be a more mindful and thought-out way of traveling, allowing employees to have a better life balance and employers to have a better return on investment.” Prior to the onset of the global coronavirus pandemic, business travelers represented about half of airline revenue, or about 1.7% of total global GDP, according to Beroe. But with businesses seeking cost-saving measures, and integrating virtual meeting tools to conduct meetings, Beroe analysts are predicting short- and long-term effects on air travel. “Businesses have suffered around the world in this pandemic. Thus, cost-cutting will remain their prime focus at least for the coming few years. And this will mean fewer corporate air travels,” said Anusree Mohan, Senior Analyst at Beroe. “Employee travel rate will decrease as corporate customers will remain concerned about health and safety.” At Raleigh-Durham Airport (RDU), air traffic consisted of about 50% leisure and 50% business travel, spokesperson Stephanie Hawco told WRAL TechWire. “The leisure market is recovering faster than the business market,” said Hawco. “Our current mix is about 65% leisure and 35% business.” At the onset of the global coronavirus pandemic, and soon after, a dramatic reduction in air travel occurred at RDU, Hawco told WRAL TechWire in March. Compared to 2019, when about 14 million passengers traveled through the airport, 5 million traveled through the airport in 2020, Hawco noted. Air travel through RDU is steadily increasing, Hawco said. The latest available data, from June 2021, released by the Raleigh-Durham Airport Authority, showed that June travel set a new passenger traffic peak since the onset of the pandemic in 2020. The airport saw more than 887,000 guests pass through the airport in June, nearly a 15 percent increase over May traffic levels.

Read More