Starwood Capital to Acquire TMI Hospitality
Friday June 20th, 2014 - 8:50AM E
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GREENWICH, CT—Starwood Capital has entered into an agreement to acquire all of the outstanding stock of TMI Hospitality from the TMI Hospitality Employee Stock Ownership Plan.
The acquisition includes 188 hotels, the management company and the development platform. The transaction is subject to customary closing conditions such as certain franchisor and lender approvals.
Starwood Capital and its investors currently own 103 select-service hotels and, following the close of the acquisition, will control 291 select-service and extended-stay hotels across 39 states nationwide.
TMI Hospitality is a developer, owner and operator of more than 180 select-service and extended-stay hotels across 26 states.
Citigroup Global Markets Inc. acted as lead financial advisor to TMI Hospitality, and Butcher Joseph Hayes also acted as financial advisor to the company. Hentschel & Company provided a fairness opinion to TMI Hospitality’s Board of Directors. Morrison & Foerster LLP and Morgan, Lewis and Bockius LLP are serving as legal counsel to the company. Starwood Capital received legal counsel from Latham & Watkins LLP and financial advice from BofA Merrill Lynch and Barclays.
“From its inception, TMI has developed and operated more than 400 hotels, and I am pleased Starwood Capital recognizes the value created by our extensive experience and talented team members,” stated Lauris Molbert, chairman and CEO of TMI Hospitality. “With Starwood Capital, TMI will be able to continue pursuing its growth strategy while fulfilling its mission of impressing guests.”
“The acquisition of TMI Hospitality, a proven and trusted property manager, offers Starwood Capital the exciting opportunity to build on our investments in select-service and extended-stay lodging,” said Suril Shah, SVP, acquisitions of Starwood Capital. “We are looking forward to continuing the legacy of TMI’s development and management platform.”
Tags: Starwood Capital • TMI Hospitality • Hospitality • Acquisitions •
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