Search

Wells Fargo is planning to sell its San Francisco headquarters at 420 Montgomery St. and shift its power base to the East Coast, with CEO Charlie Scharf and key executives now based in New York. The bank has hired Eastdil Secured as an adviser for the sale and will be moving to a new office at 333 Market St. in San Francisco. This move marks a shift away from San Francisco, where Wells Fargo has had a presence since the 1850s, but the city remains important to the bank. [Extracted from the article]

The investment firm CGI Merchant Group has lost control of the former Trump hotel in Washington, D.C. after defaulting on its debt. The property was sold in a foreclosure auction to BDT & MSD Partners, the merchant bank that provided the loan. CGI is still hoping to regain the rights to the property's long-term lease, but BDT & MSD has stated that they will hold on to the rights. Hilton, the owner of the Waldorf brand, will continue to operate the hotel. The Trump family had leased the property from the federal government and sold the lease rights to CGI in 2022. [Extracted from the article]

Hilton Worldwide Holdings is acquiring Graduate Hotels, a hotel operator that focuses on college towns, for $210 million. The acquisition is part of Hilton's strategy to tap into the underserved market of college towns, where existing hotels tend to be older or limited-service properties. Graduate Hotels, on the other hand, offers guests a stay that reflects the community and is closer to campuses. Hilton plans to wrap the brand into its rewards system and infrastructure to drive growth and establish early relationships with college students and parents. The deal is expected to close in the second quarter. [Extracted from the article]

Florida developers Fort Partners and Merrimac Ventures are embarking on a $1 billion hotel and residential project in Telluride, Colorado. The project will include a Four Seasons hotel and condo property with 52 guest rooms and 68 residences. The developers are venturing outside of Florida due to the overcrowding of real estate developers on the Florida coast. They aim to create a luxury property similar to the Surf Club in a less-congested niche ski town. Despite challenges such as limited flights and weather dependency, high-end Colorado ski resorts have performed well in recent years. The developers also plan to make Telluride a year-round destination by attracting summer guests with activities like mountain biking and music festivals. [Extracted from the article]

Private-equity firm TPG has begun purchasing single-family homes in Florida vacation markets and renting them out nightly as an alternative to hotels and short-term rentals. TPG hired Kasa, a hospitality firm, to manage the properties. The firm sees an opportunity in the evolving travel habits during the pandemic, with more people combining business and leisure trips and seeking spacious homes with kitchens and greater privacy. If successful, this strategy could pose a threat to the hotel industry, which is already facing competition from short-term rental companies like Airbnb. [Extracted from the article]