Susie Grynol resigns from HAC, appointed VP at Marriott International
The Hotel Association of Canada (HAC) has announced the resignation of Susie Grynol from her position as president and CEO, effective June 3rd, 2024
VM Hotel Acquisition Corp. has announced its proposed qualifying acquisition of a US$411 million portfolio of five premier hotels, consisting of 2,079 keys in four cities and two countries.
VM Hotel Acquisition Corp. has announced its proposed qualifying acquisition of a US$411 million portfolio of five premier hotels, consisting of 2,079 keys in four cities and two countries, to create an initial cross-border North American portfolio of high-quality hotel properties.
Following the Qualifying Acquisition, VMH will be a publicly-traded real estate operating company “allowing investors to participate in a long-term real estate strategy of acquiring and growing a portfolio of high quality, iconic and well-located upper-upscale and luxury North American hotel and resort properties at a discount to their stabilized values and replacement costs,” according to a release from the company.
The US$411 million purchase price is expected to be funded through a combination of approximately US$260 million of mortgage financing and US$20 million raised through the issuance of VMH shares to a vendor, with the remaining portion funded through cash on hand and the PIPE Investment.
Initial Portfolio Highlights
The hotels in the Initial Portfolio, set out below, are currently operating and together comprise 2,079 keys in four cities – Boston, Massachusetts, Cleveland, Ohio, Montreal, Quebec and Panama City Beach, Florida.
Battery Wharf (Boston, Massachusetts) — 150 Rooms
Hyatt Regency (Cleveland, Ohio) — 293 Rooms
The Renaissance (Cleveland, Ohio) — 491 Rooms
Sheraton Centre (Montreal, Quebec) — 825 Rooms
Sheraton Golf & Spa (Panama City Beach, Florida) — 320 Rooms
The majority of the hotels are fully renovated, with all "hard" construction improvements recently completed. The remaining renovations to be completed following the Qualifying Acquisition are primarily "soft" goods that will involve minimal interruption and disruption to the guest experience or operations.
The Initial Portfolio is being acquired at an attractive valuation. The total purchase price of US$411 million represents a 25 per cent discount to current appraised stabilized values, a 65 per cent discount to replacement cost and a weighted-average portfolio acquisition cost of approximately US$198,000 per key.
Through the Qualifying Acquisition, VMH will be partnering with leading hotel brands and world-class operators including Hyatt Hotels Corporation, Marriott International, Inc., Aimbridge Hospitality, Westmont Hospitality Group and Crescent Hotels and Resorts.
In recent history, the hotel industry has weathered several "black swan events". Previous disruptions, such as 9/11, resulted in sharp periods of demand downturns, however, after each such event lodging demand rebounded within 10 to 14 months to pre-event levels. While the COVID-19 pandemic has had a drastic impact on hotel demand and performance, currently available data indicates the hotel industry is well poised for a quicker than expected rebound to pre-pandemic levels.
The Hotel Association of Canada (HAC) has announced the resignation of Susie Grynol from her position as president and CEO, effective June 3rd, 2024
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