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Associated Press
21-02-2025
- Business
- Associated Press
Digital OM Tool Transforms Hotel Development Financing
Bridge Platform Saves Developers Time and Streamlines Access to Capital NEW YORK, NY, UNITED STATES, February 21, 2025 / / -- Bridge, a digital platform that connects hotel developers with a diverse network of debt capital providers and captive family office lenders, has launched its innovative Digital Offering Memorandum (OM) tool. This service allows developers to create professional-grade offering memorandums—documents that can cost developers up to $20,000 and require significant time and effort—in a fraction of the time, with final delivery in hours. 'Raising capital for hotel projects requires professionally-prepared materials that showcase the project's strengths and potential to lenders,' said Rohit Mathur, CEO of Bridge. 'The Digital OM tool streamlines this process, making it more efficient and accessible for developers. By providing this tool, we're making it possible for all developers to create materials which were typically only accessible to large institutional developers. We're also providing underwriting metrics which lenders can use to evaluate projects more efficiently. Bridge is deeply focused on driving innovation in the hospitality industry.' The tool uses advanced AI technology to simplify the creation of offering memorandums. Developers only need to upload two documents to the platform, significantly reducing the time and resources typically needed. Once completed, these materials can be shared directly with Bridge's extensive network of lenders via the platform. Additionally, the Bridge platform ensures data protection and security and recently received SOC 2 compliance for the platform. Bridge unveiled the tool at the Americas Lodging Investment Summit, where it was demonstrated during the Tech Challenge competition. The Digital OM Tool aligns with Bridge's broader mission to modernize hotel financing through technology. It builds on the company's track record of innovation, including last year's launch of the Ground-Up Construction Lending Program, which provides in-house financing for construction and renovation projects involving franchised hotels. With these initiatives, Bridge continues to redefine hotel development financing and support growth across the hospitality sector. Developers can access the tool at 10 to 1 PR +1 480-886-8098
Yahoo
10-02-2025
- Business
- Yahoo
IHG CEO Targets Indie Hotels in Tech-Driven Expansion — Exclusive Interview
As the president and CEO of IHG Hotels & Resorts, Elie Maalouf has his hands on the levers of an industry being reshaped by technology, loyalty economics, and the gravitational pull of big brands. 'There's always been a mix of local and global in hospitality, but the game has changed,' Maalouf said. 'Today, the regional players that want to go further need access to capital, technology, and distribution networks that only global brands can provide.' One clear example is IHG's April 2024 deal with Novum Hospitality. A homegrown German group decided it made more sense to hitch its future to IHG than to go it alone with its own brands. That decision—turning over 119 properties for franchising to the IHG machine—tells a bigger story about what's happening across Europe's fiercely independent hospitality scene. A year and a half into the role, Maalouf sat down with Skift for an exclusive interview at the Americas Lodging Investment Summit (ALIS) in Los Angeles. The CEO covered the dynamics he sees driving more independents to IHG, how tech investments could give IHG a competitive edge, and why he's excited about Japan's potential for hotel development (from midscale to luxury). Europe is a key market for a global hotel group like IHG. Only about 40% of hotel inventory there is branded, according to CoStar's STR. 'We see tremendous opportunity for growth in Europe, where independent hotels and regional chains are realizing that competing in today's digital landscape is incredibly expensive,' Maalouf said. Rather than trying to buy IHG's way in with hard assets, the group is relying on a franchise-heavy model that emphasizes conversions, such as the Novum deal. Novum's decision wasn't just about gaining access to IHG's global distribution network. It was also about tapping into a technological ecosystem that would have been prohibitively expensive to build independently. In other words, Europe's hotel landscape requires massive investment in digital infrastructure. "It's the kind of investment that's becoming increasingly difficult for regional hotel groups to shoulder alone," Maalouf said. "How you interact with the travel experience from beginning to end is now very digital," Maalouf explained. "You expect to research and book digitally. You expect to be able to check in and out digitally, to ask for services in the hotel digitally, and so on." Software investment is one of the ways IHG has sought to be an attractive partner for independent hotel owners who are feeling the squeeze of rising tech costs and changing consumer expectations. Its multi-year shift to a cloud-based Amadeus-run central reservation system was well-documented pre-pandemic. Since then, the hotel group has continued revamping its tech stack. Worldwide, IHG has rolled out what Maalouf calls the "industry's leading guest reservation system." The software lets all its hotels sell rooms as well as specific "attributes" — floors, views, experiences — before a guest even walks through the lobby. Maalouf said it has been rolling out AI-driven systems that flag potential guest issues and provide real-time assessment of guest feedback before they become Tripadvisor fodder. 'If you wait for a survey after checkout, you've already lost your chance to turn a stay around,' he said. 'The key is fixing problems while the guest is still in-house.' A new AI-powered revenue management system, already deployed in nearly 3,500 properties, helps optimize pricing in real-time. The company has even re-platformed its content management system to enable multi-language translation and rich-media content delivery. IHG has also been nudging franchisees toward renovations by offering data on what updates will have the biggest impact on guest satisfaction and revenue. Maintaining consistent quality across properties is crucial for a company hosting approximately one million guests per night. "Even if we're 99.9% precise in delivering customer service, that's still a thousand people that weren't exactly satisfied," Maalouf notes. In China, IHG is even experimenting with robots in hundreds of its hotels by using them for towel and drink delivery. Maalouf was quick to position this as a practical solution to labor shortages. IHG One Rewards, the company's loyalty program, is another pillar of Maalouf's vision. When he took over, IHG had fallen behind competitors in the points wars. Skift noted that, a decade ago, IHG had the most members in a loyalty program of any group, but since then (and before Maalouf's tenure) had fallen to third place after Marriott and Hilton. As of late 2024, the company was on track to have approximately 145 million members by year-end, while Marriott and Hilton each had over 200 million. "What really matters is the number of members per room," Maalouf said. "Some hotel companies have fewer rooms than we do. Some companies have more rooms. For fair comparisons, you have to look at the proportion of members per room. On that, IHG One Rewards is right up there with everybody and growing quickly." 'What also matters isn't just how many members you have—it's how many of them actually stay with you,' the CEO said. Nearly 70% of IHG's room nights in "the Americas" now come from loyalty members, up 10 percentage points from 2019. (Globally, the figure is 60%.) The levels are roughly comparable to what its peer companies report. The proportion is important. Direct bookings by loyalty members avoid the commissions that online travel agencies charge. According to Maalouf, IHG's loyalty program's recent membership gains are owed to personalization powered by tech. The program lets guests tweak their perks in a way that others don't. The renewal this year of IHG's credit card deals with JPMorgan Chase, set to run through 2036, cements the strategy. Credit card fees recognized within IHG's operating profit will more than triple by 2028, IHG said. IHG's growth engine isn't all high-thread-count luxury. Among its 19 brands, Holiday Inn Express remains the company's golden goose. The brand has conquered the upper-midscale segment with ruthless efficiency. With over 3,200 hotels worldwide, it's a reliable, no-frills bet for travelers and a moneymaker for franchisees. 'It's a brand that resonates across markets because it delivers a consistent, high-quality experience at a price point that works,' Maalouf said. That said, IHG's luxury and lifestyle brands have surged in prominence, accounting for 20% of the group's pipeline—nearly double what it was five years ago. The company's Six Senses, Regent, and Kimpton brands continue to set a high bar, with new projects in sought-after destinations like Santa Monica, Telluride, and the Maldives. Regent Santa Monica Beach, with its high-end dining and oceanfront spa, is a prime example of IHG's push into the ultra-luxury space, Maalouf said. Meanwhile, Six Senses is expanding in the Americas and Europe, capitalizing on growing demand for sustainable, experience-driven luxury. 'We've doubled down on luxury and lifestyle, knowing that guests today want more than just a hotel—they want a full-scale immersive experience,' Maalouf said. Exhibit A: If the U.S. is IHG's biggest market playground, Japan is a sleeping giant for expansion. The country's hotel industry has been historically independent, with only a very small percentage of its total inventory tied to global brands. However, international travel to Japan is booming—40 million visitors last year, with a target of 60 million. So, Maalouf sees a major opportunity to introduce IHG brands into the mix. 'Japan has been a domestic-driven market for a long time, but that's changing,' Maalouf said. 'There's a ton of room for branded growth, and we're ready to bring our solutions to the table.' The company recently expanded its Garner brand into Japan, tapping into a midscale niche that international players have underserved. Maalouf starts his days at 5am with a workout (twice-weekly outdoor runs when his schedule permits). He joked that health maintenance is much like brand management — consistency is key. Running IHG is no desk job, so he tries to exercise even while on the road. In recent weeks, he has traveled from Shanghai to Hong Kong, Tokyo, and Singapore, inspecting properties, meeting with regional teams, and speaking at events. Maalouf said he's still learning, given that he has only been in the hotel industry for a decade. He previously worked at Weyerhaeuser Real Estate Company and as an advisor with McKinsey. "I learn something every day in this business – multiple things a day," Maalouf reflected. "It's just something to learn from our colleagues, from owners, from journalists. And I get a lot of life and stimulation from it — the process of getting to know everything in this business." Maalouf's goal for IHG is similar. He expects his team to evolve in response to the latest trends and intelligence. 'Our job is to create long-term value—for guests, for owners, and for our partners,' Maalouf said. 'The industry is changing, and we plan to lead that change.' The hotel industry is finally catching up to airlines in the art of online upselling, with new tech investments set to unlock billions in ancillary revenue. The hotel industry is finally catching up to airlines in the art of online upselling, with new tech investments set to unlock billions in ancillary revenue. Read More What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200. Get breaking travel news and exclusive hotel, airline, and tourism research and insights at Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
We Now Know What Hilton Paid for NoMad Hotels: Just $56 Million
When Hilton announced last April that it had acquired a majority controlling interest in Sydell Group, the owner of NoMad Hotels, it did not disclose deal terms. But Hilton revealed the price in an annual financial filing posted Thursday: Just $56 million. That's probably one of the cheapest deals for a brand by a major hotel group in recent years. In the filing, Hilton stated: "In April 2024, we acquired a controlling financial interest in both Sydell Hotels & Resorts, LLC and Sydell Holding Company UK Ltd (collectively, the "Sydell Group"), which owns the NoMad brand." "We accounted for the transaction as a business combination and recognized the fair value, which included measurement period adjustments made subsequent to the acquisition date, of an indefinite-lived brand intangible asset of approximately $48 million and management contract intangible assets, with an aggregate fair value of approximately $8 million." The $56 million may not be the total final price. Earlier last year, Hilton's financial filings said that remaining "noncontrolling" equity interests held by others in the Sydell Group can be sold to Hilton in 2030 or bought by Hilton in 2032. These interests had "a fair value of $22 million as of the acquisition date." Hilton plans to scale up NoMad Hotels from a single property in London today to a luxury brand with hotels that "are both grand and intimate" and have "special touches like unique local art collections featured in each property," the filing on Thursday said. "If you're going to buy a brand ... then the perfect thing to do is to buy something that is small, but it feels much bigger, and grow it," said Chris Nassetta, Hilton president and CEO, when speaking at a press conference at the Americas Lodging Investment Summit, or ALIS, in Los Angeles last week. "Nomad is in a crowded space, a space that we have wanted to be in for a while," Nassetta said. "It was pretty well known despite being only one hotel, and it has a brand ethos that we wanted to scale up," Nassetta said. "It had a great perception.... In the next 10, 15 years, there might be 30 to 50 in the most important urban destinations." "Maybe one other player has something similar to us," Nassetta said. "So it's a space we needed to be in." NoMad may become most closely comparable to Marriott's Edition brand over time. The NoMad acquisition appears to be relatively inexpensive compared to some other recent acquisitions. The deal mainly involves intellectual property for the brand, staff knowledgeable about boutique hotels, and a management contract to run a hotel in London. One comparable recent acquisition was Hyatt's purchase of Standard International's brands last year. Hyatt bought The Standard, The Peri Hotel, and a few smaller brands for a base purchase price of $150 million, with an additional $185 million contingent on further properties entering the portfolio, bringing the transaction value to $335 million. Like Hilton, Hyatt wanted to buy talent and intellectual property to scale up its lifestyle hotel offerings more quickly. It has since established a dedicated lifestyle group led by Standard International's Executive Chairman, Amar Lalvani. Back in 2022, Hyatt acquired Dream Hotel Group's lifestyle hotel brands, including Dream Hotels, The Chatwal Hotels, and Unscripted Hotels. Initially, Hyatt spent $125 million to acquire Dream Hotel Group's existing hotels. Additionally, if Hyatt purchases all two dozen signed long-term management agreements for planned hotels, it will pay an extra $175 million over time. Luxury hotels can differentiate themselves by broadening their offerings and embracing lucrative experiential trends. Luxury hotels can differentiate themselves by broadening their offerings and embracing lucrative experiential trends. Read More What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel breaking travel news and exclusive hotel, airline, and tourism research and insights at Sign in to access your portfolio
