The Blog.

Introducing the NOBU HOTELS AND RESIDENCES

Wed, 11 Jun 2008 18:45:43 -0700

Following the trend of pre-branded developments, Nobu Hotels and Residences, based on the acclaimed “Nobu” sushi collection, will begin its attempt as a hotel chain at 45 Broad Street in New York City’s financial district downtown. Nobu restaurants are currently in 15 locations around the world and first began in New York with Myriad Group. Myriad, is led by Drew Niewporent, and first partnered with Richie Notar, Meir Teper and actor Robert De Niro. And now, the same group is at it again with Nobu Hotels.

The Development

The first Nobu Hotel in North America will be located at 45 Broad Street,. in a 62- story entirely glass tower of glass tower developed by Swig Equities, a local New York developer (another Nobu Hotel is already being developed in Herzilya, Israel, which is ten minutes from Tel Aviv). The building will be mixed use, as the top 20 floors will feature 77 huge condo residences while the floors below will feature a 128- room Nobu Hotel and 13,000 square feet of retail space as well. And, of course, the Nobu restaurant will be stationed on the third floor. Acclaimed designer, The Rockwell group, which a renowned design firm that has created other Nobu restaurants, including the Atlantis--Paradise island location, will construct thise newest Nobu.

The building will apparently be LEED certified and include various guest amenities, including a health club, spa, pool, private film screening rooms, a sake and wine cellar, and a sun terrace. The building’s Bbroad Sstreet location means that the Nobu Hotel will be in the center of Lower Manhattan’s financial district action, blocks away from the NYSENew York Stock Exchange.

Analysis

It’s interesting what developers are doing now in downtown Manhattan. It remains to be seen if people will flock to downtown for luxury hotels. With Four Seasons and other five e star brands heading downtown, will Nobu see successbe succesful? And, furthermore, what clientele is Nobu going afterpursuing? Nobu seems like a luxury lifestyle brand so that will probablythat could appeal to the regular wealthy leisure traveler. But will that leisure traveler want to be downtown?

I think so. Look at all the leases being snatched up downtown. As Swig Eqities claims on its website, the tower will be within a one-block radius of Tiffany & Company, Hermes, Canali, Brioni, Thomas Pink, True Religion Jeans, a BMW dealer and popular restaurants that include Delmonico’s, Cipriani, Bobby Van’s Steakhouse, and Haru. Nobu should have some great success in the FIDI area.

But there are other questions I haveI have other questions, e. Especially looking inin regards to the future of the brand.

It’s unclear how the Nobu brand will operate further.where the Nobu brand will go from here. Nobu currently already has outposts in popular hotels like Kerzner’s Atlantis Hotel and the Hard Rock Las Vegas. Would Nobu actually have place a freestanding hotel of its own next to a competing hotel with a Nobu restaurant? Doesn’t make much sense, does it? This is definitely something we should watch so that we’llin order to better understand the Nobu Hotel group’s brand expansion plans in the future.

And what’s with the branding concept in generals these days?. We see hotel brands popping cropping up that were originally glass manufacturers or clothing brands, and now RESTARAUNTS? I thought restaurants were second fiddle when it came to negotiating a hotel management agreement. Now Nobu is the number one priority in the agreement as it’s the basis for the brand. And it looks like they’re starting a trend. I see more restaurant chains becoming small niche hotel chains in the future. But who knows if that will actually work out…

Finally, there’s been some talk about the Nobu Hotel’s rooms. According, to a New York newspaper, the hotel rooms will feature in-room mini bars that feature sake and green tea. Partner in the property, Richie Notar, one of the partners, even mentioned, "Instead of a mint on the pillow, you'll could find a sushi roll.” Let’s hope that’s not the case, but it will be interesting to see what specifically Nobu nuances the group uses withinwill implement in the hotel.

For more visit Swig Equities
http://www.swigequities.com/press/54/2008/052008-176.pdf

For the story visit Globe Street’s story:
http://www.globest.com/cgi-bin/texis/scripts/globest-search/search.html?searchType=0&query=nobu

1 Hotel and Residences, CLEVELAND?!

Sun, 25 May 2008 21:44:58 -0700

I’m just as shocked as you are. The newest 1 hotel, the eco-friendly 5-star brand that is Barry Sternlicht’s latest brainchild, will be developed in the downtown area of Flats in beautiful Cleveland, Ohio! Yes, Cleveland, if you can believe it, and it’s arriving in 2011. Fairmount Properties and the Wolstein group (Developers Diversified Realty Corp), both all-purpose local and national real estate development firms, have decided to create a joint venture with Starwood Capital to debut the first luxury hotel in the Cleveland area in who knows how long.

The hotel will feature 150 rooms, a spa, meeting space, and a yet to be named organic-style restaurant. Additionally, the hotel will have about 50 condo units that range from 1300 to 4000 square feet and are priced from $400,000 to $2 million. That’s a range of $308 per sq. ft. to $500 per sq. ft.

The 1 Hotel, located at West 11th Street and Main Avenue, will also be connected to the new Ernst and Young office tower in Downtown Cleveland.

 

The project is earmarked at costing $48 million altogether. I definitely think a new luxury development like this has to cost more than $50 million. The cost of building supplies, materials, labor, etc. will definitely, in my mind, make this project heavier in expenses than is predicted. At only $240,000 a key, it seems very unlikely that this project could possibly be developed so cheaply. I see this being upwards of $350,000 a key, or around $70,000,000. Either way, the project will definitely be profitable as long as the condo units sell which should secure a cool $30 million or so for developers.

When I first discovered this 1 Hotel Cleveland project, I was shocked—as you probably were. But, it kind of makes sense. Luxury brands have stayed away from Ohio, and especially Cleveland, for some time. Struggling ADR and occupancy rates have dissuaded developers from harvesting new hotels and projects. Cleveland is consistently recognized by national hotel consulting companies like HVS for being a struggling market. But, now, 1 Hotels is arriving. And I think that’s a GOOD thing. There’s got to be a market for this when there’s been an absence of new luxury developments for several years.

As Randy Rutteberg, a partner of the joint-developer Fairmount Properties, said,

“We've had several conversations with pro athletes who have an interest, as well as empty-nesters who are looking to move back to the city…”

The 1 Hotel will surely be stiff competition for the acclaimed 4-star Ritz Carlton and Inter-Continental Cleveland. And surely the 1 Hotel will differentiate itself with a new central location in the Flats, tons of development surrounding itself, a chic new brand, and it’s completely eco-friendly so it will attract a variety of customers in large numbers. I expect 1 Hotel Cleveland to be successful despite the struggling market of today.

All in all, it’s a risky plan for a development—especially for the equity players. BUT, it’s exciting. And I like Starwood’s initiative. It shows a lot to declare Cleveland a viable location for their esteemed “lifestyle” brand. If this development comes to fruition, a struggling town like Cleveland could resurge. All by following the “If we build it, they will come” mantra. Look for a 1 Hotel in Cleveland in the next few years.

Click here for a map of the current 1 Hotels and Residences that are in development

Click Here for the Story from Cleveland.com

Watch Out Beverly Hills: The Waldorf = Astoria Is Coming

Tue, 13 May 2008 12:41:58 -0700

The long awaited Beverly Hilton and Waldorf=Astoria Collection development is now in its final stages. Despite the zoning logistics, detrimental increases in traffic, and massive 9900 Wilshire project next to the Waldorf’s site, the project will be completed. The Waldorf, owned by Oasis West Realty chairman/Pac-Bell tycoon Beny Alagem, will be a 120-room hotel located in a “new signature building celebrating California’s luxury lifestyle designed by Gwathmey Siegel & Associates Architects.” The signature design referred to includes art-deco styling, LEED certification, and Waldorf’s renowned luxury experience.

Map of Development Plan

Why?

Why would the Beverly Hills City planners allow such a development? 750 million dollars – why else? As the L.A. Times reported (below) on Thursday, the hotel will generate 750 million dollars in revenue for the city of Beverly over the 30 year term agreed upon. According to the Hilton website (below), the project will net an additional 55 million dollars in annual consumer spending for local retailers, which will predominately come from hotel guests and new residents.

Projected Earnings Potential of a Hilton/Waldorf=Astoria Development and “Revitalization”

Proposed Traffic Resolution

Depiction of the Debated Traffic Resolution for the “Revitalization Plan”. Will it help? Doubtful.

Hilton’s proposed traffic improvement plan will add 5 million dollars in aid to the city for improvements in counter-traffic planning. The Beverly Hilton will reduce some of its property in order to add an additional lane to Wilshire Blvd. They are also planning to eliminate several existing parking spots, add traffic lights, and make the hotel driveways significantly more compact. Is this really going to fix much? Probably not. The depiction above gives you a good sense of the before and after of the traffic resolution. In reality, the actual amount of available space will remain unchanged. Accordingly, my guess is that the hotel’s efforts will not yield significant results, as Wilshire and Santa Monica will continue to be jammed.

Waldorf Residences

Finally, the Waldorf development will also feature two towers with 110 of the most expensive condos in Los Angeles. Some costing upwards of 5 million dollars. I wish the developers good luck in selling those condos, because I think they’re going to need it. Los Angeles isn’t New York. I can still buy a nice Beverly Hills home for 5 million dollars, so let’s not get carried away, Waldorf developers. Check out some of the interior demos below:

Apartment Interior Rendering at the Waldorf Residences

Apartment Bathroom Rendering at the Waldorf Residences

Prestige.

The property does have a certain prestige. A Waldorf=Astoria at the very entrance of Beverly Hills will become a city landmark and formidable foe of the nearby Montage, Beverly Hills Hotel, Peninsula, and Four Seasons. Also, it’s important to remember a key tenant of Beverly Hills—Hilton Hotels and Resorts. Their headquarters are steps from the current Beverly Hilton and where the Waldorf development will sit. It’s important for Hilton, prestige-wise, to land a breakthrough property near HQ that goes beyond an 80 million dollar Beverly Hilton makeover. The Waldorf collection is in its beginning stages of international growth and branding with less than a dozen agreed-upon contracts with developers (check out the maps page for current Waldorfs around the world).

Hilton Reshuffling.

Remember, this is a new time for Hilton. Chris Nasseta is the new chief, taking over for Bollenbach. Steve Goldman remains the President of Global Development and a handful of other new execs hold various positions at Hilton HQ. It’s important that they make a significant move (even if the project began before their employment). The Beverly Hills Waldorf would be a big step in launching this new and distinguished brand and would definitely increase the value and recognition of such a brand. They’re trying to give St. Regis and Four Seasons a run for their money. And it looks like they will. Despite the traffic, zoning issues, and nearby developments, look for the Waldorf Astoria to debut in 2010/2011 right at the entrance and heart of the beautiful 90210.

Links:
Hilton’s Renovation Plan
L.A. Times Story
Curbed-LA’s Story
Check out the Maps Page for a look at the current Waldorf=Astoria Collection

Banyan Tree Enters North America—Look For U.S. Developments Soon

Fri, 25 Apr 2008 14:51:00 -0700

Impressive Banyan Tree Growth

Banyan tree recently announced it would be opening a resort and spa at Mayakoba, Mexico in late 2009. This is such a significant development because the 20+ Banyan tree hotel chain, known for its Thai hideaways of exclusivity and luxury, will be entering the North American market for the first time. Banyan Holdings Inc, the resort owner and developer of Banyan Tree’s hotel portfolio, is lead by Singaporean multi-millionaire Ho Kwon Ping. Ho recently told Hotels Magazine in their September 2007 issue (link below) that Banyan would look for unparalleled growth opportunities that allow the brand to be a niche player in the market of resorts and spas that average fewer than 300 keys per property. Banyan Tree has seven operating business segments: hotel investment, hotel residence sales, hotel management, spa operations, gallery operations, property sales, design fees and more.

Banyan’s growth should be marveled at as they will open eight Hotels/Spas in 2008, 18 in 2009, and more than six in 2010. Banyan’s unprecedented growth is due to smart business decisions by Ho that have allowed the company to have plenty of capital, target new and exciting destinations, and rely on the company’s resort philosophy of “bliss, splendor, exclusivity, getaway, [etc].”

Now the company looks to add to its portfolio and target new customers and target markets but in a very methodical method. They will start with locations like Mexico (Mayakoba), UAE and Bahrain, Vietnam, Turkey, and the Caribbean. Then they will make their grand entrance in the United States….

U.S. Outlook for Banyan Tree Hotels

Purely speculative, I see Banyan Tree securing United States land contracts and seeking U.S. based developers in the very near future. When real estate is down, Banyan could capitalize on attaining premier property locations so that they will enter the United States in the best locales that fit their niche operation. Locations that sound appealing include the likes of (again purely speculative) South Florida, Napa Valley, Aspen, Palm Springs, Scottsdale, Vermont, and Deer Valley—just to name a few potential Banyan spots. They will also try to target big city locations as they have in China with locations like Beijing. Perhaps they’ll go after some New York City retreats, or locations in Chicago, L.A., and Miami. When Banyan Tree and Ho Kwon Ping find they have an established network of contacts consisting of designers, architects, developers, and lenders, they’ll be able to make their grand entrance into the United States with an established name that is renowned around the world.

Mayakoba Development

The Southeast shore of Playa del Carmen, Mexico, the new and ever-trendy hotspot of Latin American hotel developments, will be introducing the first Banyan Tree to the United States starting in early 2009 with the Banyan Tree Mayakoba. Spanish developer OHL is in the process of developing the property.

As Banyan puts it, they will attempt to

“Blend an Asian aesthetic with the local natural environment to create an intimate, ecological haven with exclusive ownership opportunities”

(Funny how Banyan added “exclusive ownership opportunities” to their mission statement.)

Interestingly enough, OHL Group has been developing Mayakoba in the Yucatan Peninsula for some time and has already completed the Fairmont Mayakoba and will open several other hotels (notably the Viceroy Rivera Maya) in the area along with 3 golf courses in total. It’s evident that this resort is going to be something else. With Banyan’s renowned design and service, accompanied by an exclusive villa resort that has a Greg Norman course minutes from the property, the Banyan Tree Mayakoba is sure to command high adr and a high occupancy rate. Furthermore, with 50 of the total of 132 villas up for sale as residences, this development will definitely be completed in the very near future. The resort is going to be a big success as Banyan Tree attempts to enter the North American market for the first time.

DEVELOPMENT PICTURES TO COME SOON

Banyan Tree Mayakoba Press Release

Situated just 10 minutes from Playa del Carmen, Banyan Tree Mayakoba will feature 132 masterfully designed villas with 50 residential ownership opportunities, as part of Banyan Tree Residences Mayakoba. A prime selection of 25 residences will be offered at special pre-delivery pricing under the Founders Program, which will allow owners to enjoy first selection of the villa inventory. The one, two and three-bedroom villas will encompass between 4,000 to 6,000 square feet each, and will be offered for ownership, priced from $1 to $6 million.

Signature Banyan Tree touches include beautifully appointed villa amenities such as a private pool, outdoor jet-pool and a spacious terrace overlooking Mayakoba’s undulating lagoons, fairways, mangroves, and the tranquil Caribbean Sea. Keeping with Mayakoba’s peaceful, natural setting, guests of Banyan Tree Mayakoba will use the waterways as one of the resort’s primary modes of transportation. Owners will also have access to all hotel facilities, including exquisite modern Thai cuisine at the signature Saffron restaurant, and outdoor spa pavilions lining the lagoons. The well-appointed Banyan Tree Spa will offer treatments that are inspired by traditional Asian holistic therapies with a focus on spiritual, mental and physical harmony, including a state-of-the-art hydrotherapy facility. Owners will also enjoy access to the Banyan Tree Mayakoba private beach club, as well as all amenities available at the other world-class resorts that comprise the Mayakoba community.

Click here for Hotels' Mag Banyan Tree Article

Nakheel’s Stake in the Fountainbleau

Tue, 22 Apr 2008 09:40:48 -0700

Nakheel Hotels, the real estate hotel investment vehicle of Dubai World and the Sheik of Dubai, recently announced it would be purchasing a 50% stake in the Fontainebleau Miami Beach Hotel. Nakheel, always looking to add value to their now ever growing portfolio, will invest $375 million+ for the stake in the Fontainebleau resort. Dubai and Turnberry Associates, the parent of Fontainebleau Resorts LLC, now jointly own the iconic hotel.

If you recall, just a month or two ago Nakheel bought a 50% stake in the One and Only Palmilla in Mexico from Goldman’s White Hall Fund Division for a cool $315 million. Other assets Nakheel possesses include the Palm-shaped Island in Dubai, The Palm Jumeirah, which features at the tip of the island a $1.5+billion dollar joint venture Atlantis Resort between Kerzner International and Nakheel. Nakheel also owns a considerable stake in Kerzner International, the Mandarin Oriental New York City, W Hotel development contracts in Thailand, and the great dame herself, the Queen Elizabeth 2. Now they have a piece of Fontainebleau.

The Fontainebleau has been undergoing a continuing makeover costing upwards of $500 million that is set for completion in late 2008. The hotel, the creation of storied designer Morris Lapidus, was once the crown jewel of Miami Beach. But the hotel was due for a makeover with the original construction dating back to the mid 1950s. The new Fontainebleau will have over 1500 guestrooms, an enormous spa, nightclubs, and limitless meeting space. The resurrection of the Fontainebleau is evident.

So what does all this mean?

Nakheel is at the forefront of global luxury hotel developments. They have strong positions in solid and steady properties, operators, and locations. Nakheel has taken some major steps to enter North America with strategic opportunities to solidify its newfound position as a hospitality innovator. The relationship with Fontainebleau will, most likely, push Nakheel onward into even more global partnerships—whether it is with Fontainebleau, Kerzner, or some other potential partner.

What will the new upgrade entail?

The hotel has been undergoing renovation and extensive development for over 5 years and the hotel owners claim to have spent over 1 billion on the costs of just the makeover of the hotel. The most recent upgrading cost upwards of $500 million as I mentioned earlier.

Luckily, we have some great depictions of what the Fontainebleau is going to look like.

Click here to download the Fountainbleau Master Plan

The famed hotel was featured in the loved James Bond film Goldfinger.
For the Clip and more Photos click below: