THE WORLD'S BEST LUXURY HOTELS

REPORT FROM THE U.S.—The debate over credit bidding for bankrupt assets has the hotel sector in the U.S. Supreme Court spotlight.

The case of Radlax Gateway Hotel LLC and Radlax Gateway Deck LLC v. Amalgamated Bank is expected to be heard by the Supreme Court in April with a ruling expected sometime over the summer. At issue is whether lenders should have the right to purchase their own collateral at bankruptcy auction by using debt, a process known as credit bidding.

The dispute surrounds the proposed auctions of a pair of hotels owned by Radlax, an entity of River Road Hotel Partners LLC that declared bankruptcy in August 2009: the InterContinental Chicago O’Hare and the Radisson Hotel at Los Angeles Airport. Court filings show River Road had secured stalking horse bids totaling US$89.5 million for the properties.

But Amalgamated, the principal secured lender for the hotels that court documents show is owed in excess of US$161 million, objected to the bid proced ... Read more »

ATLANTA–The West Paces Hotel Group, a luxury hotel management company, announced Wednesday that effective immediately it has changed its name to Capella Hotel Group to capitalize on the successful luxury brand it has created in Capella hotels and its expanding global operations. In addition, Capella Hotel Group announced that it has formed a partnership with Stoneleigh Capital, a private equity firm with an expertise in hospitality investments to offer a new model to owners and developers and accelerate its growth strategy. 

Horst Schulze, Chairman and CEO of Capella Hotel Group said, "We are strengthening our support for luxury hotel owners, developers and investors through a partnership between Capella Hotel Group and Stoneleigh Capital that creates a new model combining the highest skill set and knowledge in strategic hospitality analysis and investment with the global standard in luxury hotel management and marketing.”

"The Capella Hotel Group has enjoyed strong ... Read more »

AUSTRALIA—Accor, a leader in Asia-Pacific, strengthens its position in Australia and New Zealand with the acquisition of Mirvac, a hotel management company.

Following this transaction comprising of 6,100 rooms (48 hotels) Accor’s portfolio in those countries will reach 241 hotels, covering the spectrum of hotel segments.

The acquisition of Mirvac is fully in line with Accor’s ambitious development strategy announced last September, which includes a target of 40,000 room openings each year in 2012 and 2013, mostly in an asset-light capacit. This operation also demonstrates Accor’s ability to secure its leadership in mature markets, through selective acquisitions. With this transaction, the Group’s network in Australia and New Zealand will reach 241 hotels and 32,500 rooms, covering the spectrum of hotel segments and resulting in a strong presence in each.

"This operation is a major success in a high growth market. With our growth strategy which includes both organic ... Read more »