From the desks of the Hotel News Now editorial staff:
- A look at Park’s position among US REITs with Chesapeake
- US border point hit by cyberattack
- Wells Fargo to sell Eastdil Secured
- German investable hotel market reaches record size
- Smura appointed CEO of Kempinski
A look at Park’s position among U.S. REITs with Chesapeake: Hotel News Now pulled together an infographic looking at the top five U.S. hotel real estate investment trusts by market cap and room count to see where Park Hotels & Resorts will stand after it completes its pending acquisition of Chesapeake Lodging Trust.
Host Hotels & Resorts remains the biggest company in terms of market cap and room count. The combined Park and Chesapeake portfolio would rank below Host for market cap at $7.4 billion (as of 30 May), and would fall between CorePoint Lodging (No. 3) and Apple Hospitality REIT (No. 4) for room count with 31,567 rooms (as of Q1 2019 reporting).
U.S. border point hit by cyberattack: U.S. Customs and Border Protection announced “a malicious cyberattack” on a subcontractor’s computer network, which released photos of travelers and license plates to hackers, USA Today reports. The subcontractor is the sole provider of stationary license plate readers at U.S. borders.
“A Customs spokesman said initial reports indicated that the images involved fewer than 100,000 people; photographs were taken of travelers in vehicles entering and exiting the United States through a few specific lanes at a single land-border port of entry over one-and-a-half months. No other identifying information was included with the images,” according to the news outlet.
The agency told the newspaper the subcontractor violated its agreement with the government by transferring copies of images taken by the license plate readers to the company’s network.
Wells Fargo to sell Eastdil Secured: Wells Fargo & Co. announced that it is selling its private real estate investment banking division, Eastdil Secured, in a management buyout, GlobeSt reports.
“Wells Fargo will continue to own a minority stake in the firm along with Guggenheim Investments, on behalf of certain institutional clients, and Temasek, a global investment company headquartered in Singapore,” according to the news outlet.
Once the sale is complete, the public market real estate investment bankers of Eastdil will stay with Wells Fargo to create the real estate, gaming, lodging and leisure industry coverage group within corporate and investment banking. Wells Fargo will hold a minority ownership interest in Eastdil.
German investable hotel market reaches record size: The investable hotel market in Germany reached a record high in 2018 of €57.5 billion ($65 billion), up 9.5% from the previous year, according to German investment firm Union Investment Real Estate GmbH.
“The growth in the size of the institutional hotel market in 2018 contrasts with a slight fall in transaction volume from around €4.2 billion ($4.7 billion) in 2017 to approximately €4 billion ($4.5 billion). Whereas in the prior year around 8% of the calculated total market changed hands, the proportion in 2018 was 7%,” the release states.
“Supply remains tight, chiefly because comparatively few portfolio managers are disposing of their properties. As returns in many other asset classes are still very low, increasing numbers of investors are turning their attention to hotels. Due to strong demand, yield compression in the hotel market continues,” Martin Schaller, head of asset management hospitality at Union Investment, said in the release.
Smura appointed CEO of Kempinski: Martin R. Smura has been appointed CEO of the Kempinski Group, arriving from his role as executive chairman of the Dorint Hotel Group, according to a news release.
Smura also has experience at Azimut Hotels, Adlon Holding and InterContinental Hotels Group, where he became the firm’s youngest regional GM at age 30. Kempinski has a portfolio of 77 hotels and residences in 34 countries.
Compiled by Danielle Hess.