Two Roads Hospitality will continue increasing its global presence by expanding the Alila Hotels & Resorts brand portfolio throughout North America. The Singapore-based brand, which the hotel company acquired in 2015, will have its first North American location—the Ventana Big Sur—on California's Big Sur coast in fall 2017, National Real Estate Investor reported.
Two Roads Hospitality will invest in updating the existing hotel and creating a resort with 59 renovated guestrooms.
Although expansion is uneven in other regions, Two Roads is continuing its expansion plans with substantial growth on the west coast of the U.S.
According to JLL's Hotel Investment Outlook 2017, JLL predicted that growth in secondary markets, Washington D.C. and the west coast would be the strongest. Meanwhile, STR's weekly report showed that San Mateo, Calif. experienced the largest year-over-year increase in RevPAR on a weekly basis by 9.0 percent to $235.25 among the hotel industry's top 24 markets. The rise in RevPAR was caused by the week's highest average daily rate increase.
JLL reported that although foreign investment in U.S. hotels increased sharply at record levels in 2016, 2017 will see a rise in domestic investment. The main drivers of capital into the U.S. hotel industry will be private equity funds, including Geolo Capital, which supports Two Roads, and REITs. The U.S. came in fifth among countries with the most active domestic investors in 2016 with $28 billion in transactions. Domestic investors are interested in domestic markets because occupancy levels reached 78 percent although supply has increased.