© Moshe Milner, Israel Authorities Press Workplace
By Liz Moyer
Investing.com — Lodge operators that emphasize group and enterprise journey are ripe for funding because the business rebounds after the pandemic.
Blackstone Group Inc’s (NYSE:) quarterly inventory possession disclosure confirmed it held greater than 8 million shares of Sunstone Lodge Traders Inc (NYSE:), a California resort actual property funding belief. The stake is about 4%, in one other guess on a rebound within the journey business.
Sunstone Lodge Traders owns resorts such because the Wailea Seaside Resort, managed by Marriott Worldwide Inc (NASDAQ:), and the 4 Seasons Napa Valley. It lately accomplished the acquisition of the Confidante Miami Seaside, which is managed by Hyatt Accommodations Company (NYSE:), and an curiosity within the Hilton Worldwide Holdings Inc (NYSE:) San Diego Bayfront.
Sunstone CEO Bryan A. Giglia mentioned earlier in August that they’re seeing a rise in enterprise and group demand including to already sturdy leisure journey. Occupancy is on the highest degree since early 2020, he added.
“Whereas development continues to be uneven throughout markets, we’re inspired by the tendencies we’re seeing,” Giglia mentioned.
Spending on enterprise journey is anticipated to surge this yr on its approach to a full restoration in 2024, when it’s projected to be on tempo with the $1.4 trillion of spending in 2019. That will be a yr sooner than anticipated, based on the International Enterprise Journey Affiliation.
Journey information web site Skift says Blackstone’s backing might assist Sunstone pace up its resort acquisition technique. It’s also a means for Blackstone to play the rebound within the journey sector, particularly enterprise journey.
The personal fairness large has already dabbled in that house. Final yr its actual property group teamed up with Starwood Capital to purchase Prolonged Keep America for $6 billion. And earlier this yr, the 2 teamed up once more to purchase greater than 100 properties branded WoodSpring Suites, which is franchised by Selection Accommodations Worldwide Inc (NYSE:), for $1.5 billion.
Group journey is almost half of Sunstone’s enterprise, Skift famous, and Blackstone has an curiosity in a reserving web site referred to as Groups360 that places assembly planners in contact with venues, a doable cross-selling alternative.