Key reopening, non-core hotel sales help Park reshape portfolio in second quarter
Key reopening, non-core hotel sales help Park reshape portfolio in second quarter
Hotel REIT reports 6% revenue per available room growth for core assets
The Royal Palm South Beach Miami, a Tribute Portfolio Resort recently reopened following a $100 million, 15-month renovation. (CoStar)
https://www.costar.com/article/496536683/key-reopening-non-core-hotel-sales-help-park-reshape-portfolio-in-second-quarter
Strong revenue growth and progress in long-term efforts to reshape the company's portfolio were the key features of the second quarter for Park Hotels & Resorts.
During the company's second-quarter earnings call, Chairman and CEO Thomas Baltimore Jr. said Park recently reopened the Royal Palm South Beach Miami, a Tribute Portfolio Resort following a $100 million renovation, which started in early 2025. That work enhanced and added guestrooms, expanded meetings and event capacity, reworked public spaces, and added new food and beverage outlets.
"We believe Royal Palm is now exceptionally well-positioned to capitalize on ongoing strength of the South Florida market and compete more effectively within the upper-upscale and luxury segments," he said. "Upon stabilization, which we expect could occur over the next two years, we believe this investment has the potential to double the hotel's" earnings.
Park is in an ongoing, yearslong effort to invest in the hotel-focused real estate investment trust's strongest-performing assets while selling off hotels executives have deemed "noncore." To that end, the company sold or exited its interests in four hotels in recent months for a combined $65 million.
Those properties include:
- The 396-room Hilton Seattle Airport & Conference Center, which sold in April for $18 million.
- The company's joint venture interest in the Hilton Alexandria Old Town, which sold for $29 million but also required Park to pay down $25 million in mortgage debt.
- The 314-room Hilton Short Hills for gross proceeds of $12 million.
Park also terminated its short-term ground lease for the 262-room Embassy Suites by Hilton Austin Downtown South Congress, and ownership of that property reverted to the ground lessor. Park received a $6 million early termination fee for that property.
Park officials say their focus is shifting now to a $100 million full-scale renovation of the Ali’i Tower at Hilton Hawaiian Village Waikiki Beach Resort.
Baltimore has noted multiple times during earnings calls that he believes Park has a larger opportunity in investing in its existing portfolio than in going out to the market to buy new hotels, and that's reinforced by what he believes are tailwinds in the major markets it's investing in such as Hawaii, Orlando and Miami.
"I think we we have an underappreciated iconic portfolio, and when you step back and look at it, there really are improving fundamentals, and I think outsized growth opportunities from [the second half of 2026] really through 2028," he said.
Sean Dell'Orto, Park's executive vice president, chief operating officer, chief financial officer and treasurer, said the company did significant work to rework its debt in the quarter including a new $700 million delayed draw mortgage loan on its Bonnet Creek complex in Orlando. Total debt for the company now sits at roughly $3.7 billion.
"During the quarter, we drew $200 million under our delayed draw term loan and used a portion of the proceeds to repay the $120 million Hyatt Regency Boston mortgage ahead of its July maturity," he said. "Looking ahead, we intend to use the remaining delayed draw term loan capacity [of $600 million], together with the Bonnet Creek proceeds, to fully repay the $1.27 billion Hilton Hawaiian Village mortgage in September and also plan to refinance the Hilton Santa Barbara mortgage later this year. These transactions are expected to meaningfully extend our debt maturities and further enhance our financial flexibility."
Second-quarter performance
Park executives saw strong performance among the REIT's core portfolio in the quarter, with revenue per available room up 6% year over year for those hotels, or 7.1% if excluding the impact of the Royal Palm, which only reopened in late July. RevPAR growth for their full portfolio was 5.8%.
The company recorded net income in the quarter of $50 million, with adjusted earnings before interest, taxes, depreciation and amortization of $198 million, an 8.6% year-over-year increase.
As of press time, Park stock was trading at $14.76 a share, up 37.1% year to date. The NYSE composite was up 10.5% during the same period.
BNP Paribas Asset Management sells central Madrid property that includes Room Mate
Macarena
Historic building on Gran Vía opened in 1945 as the Hotel Rex
The 120-room Room Mate Macarena occupies much of the Gran Vía, 43, building in the heart of Madrid. (Costar)
https://www.costar.com/article/995963531/bnp-paribas-asset-management-sells-central-madrid-property-that-includes-room-mate-macarena?
BNP Paribas Asset Management has sold a historic building in Madrid that includes a Spanish hotel brand.
The company sold the building at Gran Vía, 43 in Central Madrid for €80 million ($92.5 million) to an undisclosed buyer, Hosteltur reports. The property includes the 120-room Room Mate Macarena, part of Room Mate Hotels.
According to CoStar property data, AXA Real Estate acquired the building in 2015 for approximately $41 million. In subsequent years, AXA’s investment management and real estate asset operations were acquired by BNP Paribas.
Private equity firms TPG Angelo Gordon and Westmont Hospitality Group own the Room Mate Hotels brand.
TPG — before it acquired Angelo Gordon in 2023 for $2.7 billion — and Westmont acquired the Room Mate Macarena in 2022 as part of a 20-property hotel portfolio with an undisclosed price.
The building at Gran Vía, 43 first opened in January 1945 as the Hotel Rex. Until 2005, part of the address housed the Art Deco, 500-seat cinema Cine Rex.
Wyndham Hotels & Resorts’ brand Tryp by Wyndham operated in the building between 2009 and 2020, when Room Mate took over.
Madrid-based Room Mate Hotels has 32 properties in two hotel brands — Room Mate Hotels and Room Mate Collection — in four European countries, including 21 in Spain and five in Madrid.
Room Mate Hospitality Holdings acquired a portfolio of 10 hotels in the Spanish city of Valencia in 2024. A hotel in Geneva constitutes its current development pipeline.
Trinity Investments sells Grande Lakes Orlando in blockbuster deal
https://hotelsmag.com/news/trinity-investments-sells-grande-lakes-orlando-in-blockbuster-deal/
In what is being called the largest non-gaming U.S. resort transaction on record, Trinity Investments has entered into a definitive agreement to sell the Grande Lakes Orlando Resort, a 409-acre luxury complex anchored by a 582-key Ritz-Carlton and a 1,010-key JW Marriott, for $1.38 billion to Ryman Hospitality Properties.
Trinity acquired the resort in December 2018 for $870 million, with financial backing from Elliott Investment Management. Miami-based Trinity Investments is a private real estate investment firm that solely invests in upper-upscale and luxury hotels, typically in resort or urban markets.In May, a JV between it and Sculptor Real Estate Income Strategy announced the acquisition of the JW Marriott Marco Island Beach Resort from MassMutual. Also that month, it officially converted the Diplomat Beach Resort to the Signia by Hilton Diplomat Beach Resort. Trinity acquired the hotel in 2023 from Brookfield.
Ryman is a lodging and hospitality real estate investment trust that specializes in upscale convention center resorts. Most of its hotels fall under the Gaylord Hotels brand, a brand Marriott International acquired in 2012. All of Ryman’s properties are managed by Marriott.
“This transaction is a testament to Trinity’s ability to identify complex, large-scale opportunities and execute on a value-add plan that meaningfully repositions the asset,” said Sean Hehir, managing partner, president and CEO of Trinity. “Grande Lakes Orlando joins a growing list of resorts where our team has driven significant operational improvement and created lasting value for our investors and partners. We’re immensely proud of what our team has accomplished and excited to see the resort’s next chapter.”
The asset features 320,000 square feet of indoor and outdoor meeting space, 14 food and beverage outlets, a 40,000-square-foot spa with 40 treatment rooms and a Greg Norman-designed 18-hole championship golf course that hosts the PGA Tour’s PNC Championship. Since acquisition, Trinity has completed a renovation and repositioning of the resort. In 2024, The Ritz-Carlton Orlando, Grande Lakes was awarded a MICHELIN Key as part of the MICHELIN Guide’s inaugural hotel rating program.
Upon closing, the transaction will mark Trinity’s third disposition in 15 months, following the September 2025 sale of EAST Miami to Blackstone Real Estate and the June 2025 sale of the JW Marriott Phoenix Desert Ridge Resort & Spa to Ryman Hospitality Properties. It also follows Trinity’s May 2026 acquisition of the JW Marriott Marco Island Beach Resort.
The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. Additional terms were not disclosed.
Gencom announces leadership appointments and organizational evolution
https://hotelsmag.com/news/gencom-announces-leadership-appointments-and-organizational-evolution/
Gencom, the U.S.-based investment firm that owns, operates, and develops real estate worldwide, has announced a new organizational structure as well as leadership appointments to help position the company for its next phase of growth.
The firm has organized its operations into two complementary business lines—Gencom Capital and Gencom Real Estate—each with a distinct mandate while working in close partnership to create long-term value across its portfolio.
Founder and CEO Karim Alibhai will continue to lead Gencom, overseeing both businesses while providing strategic direction across the firm’s investment and operating activities.
“Successful real estate platforms are built by combining disciplined investing with exceptional execution,” said Alibhai. “As Gencom continues to grow, this evolution strengthens our leadership, sharpens accountability, and positions us to capitalize on the opportunities ahead while continuing to deliver outstanding outcomes for our investors and partners.”
Gencom Capital, led by chief investment officer Alessandro Colantonio, will oversee the firm’s investment strategy, acquisitions, capital formation and allocation, capital markets, portfolio management and investor relations across its equity and debt platforms.
In addition, the firm has promoted three long-time members of its investment team. Ignasi Puig was promoted to managing director, acquisitions & investments; Peter Trujillo to managing director, corporate investments; and Blythe Pierre-Louis to managing director, special situations.
Gencom Real Estate will be led by Donald McGregor, who has been promoted to president of Gencom Real Estate. In this leadership role, he will oversee the execution of the firm’s strategies across development, construction and asset management. Supporting McGregor will be Shaun Johnston, who has been promoted to head of portfolio finance & accounting, Gencom Real Estate. Reporting directly to McGregor, Johnston will lead the finance and accounting team, collaborating closely with the asset management, development and transaction teams.
Further strengthening Gencom Real Estate, the firm recently hired Jake Lynch as SVP, asset management. Lynch brings more than 15 years of hospitality investment, asset management and operational leadership experience to his new role.
“Our success has always been driven by exceptional people,” said McGregor. “As we continue to grow, we are building a team with the expertise to create value at every stage of the investment lifecycle. Jake is a terrific addition to the Gencom Real Estate platform, and Shaun’s promotion reflects the depth of talent we have developed within the firm. Together, they reinforce our ability to cultivate talent, build relationships, and deliver measurable results for our investors, partners, and stakeholders.”
Founded more than 40 years ago, Gencom’s portfolio comprises nearly $8 billion in assets under management and includes 24 owned assets in operation or under development with more than 6,000 hotel rooms worldwide. Its hospitality-driven real estate portfolio is operated in partnership with global brands, including The Ritz-Carlton, Rosewood, Auberge Resorts Collection, Fairmont, Hyatt, and Marriott.
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