Hotels Find China's Outbound Travel Rebound Slower Than Expected

25.08.2023 - 13:56 / skift.com / Sean Oneill / Alan Watts

Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.

In downtown St. Louis, Missouri, the dual-brand Home2 Suites/Tru by Hilton was placed under receivership last week, while the lender behind Hotel Indigo filed for receivership this week, reported the St. Louis Post Dispatch. The owner and developer of the 88-room Hotel Indigo, Olive Street Saint Louis LLC, failed to make payments and owes more than $10.4 million. Saint Louis Bank is asking the court to approve Midas Hospitality as the receiver. The 201-room Home2 Suites/Tru by Hilton is owned by Blueprint Hospitality and had failed to make payments on a $23 million loan. Last week a St. Louis Circuit Court Judge approved a request by lender HDDA, affiliated with Access Point Financial, to appoint Equis Hotels as a receiver to manage the property. 

The Hilton Minneapolis, in Minnesota, sold for $225 million to its creditors in a foreclosure auction, The Minneapolis Star Tribune reported. The bid was on behalf of JPMorgan Chase, which provided a $180 million loan to the Hilton’s owners in 2018. Haberhill LLC and Walton Street Capital, the owners of the 826-room hotel, still have a six-month redemption period from when the sale enters into the court system to match the bid and pay interest as well as other costs to retain ownership.

Hyatt Hotels Corporation and Jesta Group announced the first Hyatt Centric hotel in Canada, Hyatt Centric Ville-Marie Montreal, Hotel Management reported. The property features 177 guestrooms, including five suites, a restaurant, a rooftop pool, and four meeting and events facilities sprawling nearly 5,000 square feet. 

IHG Hotels & Resorts announced the opening of the Hotel Indigo Guadalajara Expo in the capital of Mexico’s Jalisco state. The property features 162 rooms, an enclosed courtyard, on-site fitness center and a rooftop bar. The Hotel Indigo Guadalajara Expo is owned by Immobiliaria JAVIPA S.A. de C.V. and managed by Grupo Hotelero Mexicano.  

Skift Note: The shifting interest rate environment and mood about banks may wrongfoot some hotel owners as they manage their debts.

Hilton’s Asia Pacific president, Alan Watts, told Nikkei Asia that they expect hotel guest numbers in China to return to their pre-pandemic levels by year-end. By the fourth quarter, they expect regular 80% occupancies. Of the 7,000 hotels Hilton runs worldwide, Asia Pacific accounts for about 9% with 672 properties representing 12 brands. They have more than 500 hotels in China. By 2025, Hilton hopes to have 1,000 hotels operating in Asia Pacific. Outside of China, Hilton is focusing on emerging markets