NATIONAL REPORT—Across the U.S., hotels are changing hands and others are securing financing. Here’s a closer look:
Pebblebrook Hotel Trust Completes Sale of Hotel Madera
Pebblebrook Hotel Trust has closed on the sale of the 82-room Hotel Madera in Washington, DC, for $23.3 million to a third party.
Following the sale of Hotel Madera, the company has completed a total of $1.3 billion of asset sales as part of its strategic disposition plan, and year to date, the company has completed a total of $449 million of asset sales toward its goal of $600 million.
Proceeds from the sale of Hotel Madera will be utilized for general business purposes, which may include reducing the company’s outstanding debt.
JLL Closes Sale of Ames Boston Hotel
JLL has closed the sale of the Ames Boston Hotel, a 114-room historic hotel located in the heart of Boston’s Financial District. JLL marketed the property on behalf of the seller, Invesco Real Estate, a global real estate investment manager, and procured the buyer, Suffolk University.
The Ames Boston Hotel is centrally located at 1 Court St. in Boston’s Financial District along Boston’s Freedom Trail and steps from the Old State House and Faneuil Hall/Quincy Market. Originally built in 1893, the Ames Boston Hotel is listed on the National Register of Historic Places and was redeveloped into a luxury hotel in 2009.
Lafrance Hospitality Buys Hilton Garden Inn in Fort Myers, FL
Hunter Hotel Advisors arranged the sale of the Hilton Garden Inn in Fort Myers, FL, to Lafrance Hospitality of Westport, MA. Excel Group was the seller.
Lafrance added the Hilton Garden Inn to its growing portfolio of properties in Florida and the Northeast. Fort Myers is one of the top growth regions in the country, and the hotel is located near universities and major league baseball spring training facilities.
Sold: Econo Lodge in Martinsville, VA
CAS Associates Inc. represented the sale of the Econo Lodge located in Martinsville, VA, on behalf of Pramukh Swami LLC and Sharad Inc. The hotel was acquired by Jafah Hospitality Inc. New ownership will continue the affiliation with Econo Lodge, and has plans to make upgrades to the asset. This 92-unit property is located in southwest Virginia; roughly 50 miles from Roanoke, VA, 29 miles from Danville, VA, and 47 miles from Greensboro, NC.
Berkadia Secures Nearly $700M in Financing in Single Week
Berkadia’s Hotels & Hospitality Group has closed $646 million in financing through six separate transactions related to properties across five states in the seven days from August 29 to September 5.
The week represents the greatest activity volume and the largest single deal on record for a team that has been consistently demonstrating 100% year-over-year growth.
The pillars of the deal activity were financing arranged for the new Fairmont Austin in Texas and a private portfolio of urban hotels, which accounted for nearly 90% of the total transaction volume.
JLL Closes Sale, Financing of Courtyard Portland Clackamas
JLL has closed the sale and financing of Courtyard Portland Clackamas, a 136-room hotel in the Clackamas, OR. JLL represented the institutional seller, and procured the buyer, McMillin LLC. Additionally, JLL worked on behalf of the buyer to secure the 10-year, fixed-rate acquisition loan through an insurance company lender.
The Courtyard Portland Clackamas is located at 9300 SE Sunnybrook Blvd. approximately 11 miles southeast of Downtown Portland. Renovated in 2016, the property consists of one four-story building with 136 rooms and suites.
Mag Mile Capital Completes $16.5M CMBS Loan for Two Hotels
Mag Mile Capital completed a $16.5 million non-recourse, CMBS loan on behalf of Nexgen Management for two hotel properties.
The borrower, Uppal “Paul” Singh of Nexgen Management, came to Mag Mile Capital to refinance a Homewood Suites by Hilton property in order to use the cash-out to acquire an additional hotel, a Residence Inn by Marriott. Mag Mile Capital secured a 10-year non-recourse CMBS Loan closed at a 5.4% interest rate with a 25-year amortization and 70% loan-to-value ratio for the borrower. The financing provided cash-out of the existing loan to acquire the Residence Inn, as well as obtain funding for property improvement plans for the new acquisition.
Located at 3759 North Dr. in the border town of Brownsville, TX, the three-story Homewood Suites is a 66,340-sq.-ft., 86-room, extended-stay hotel built in 2000 and renovated in 2016. Built in 2005, the Residence Inn by Marriott is located at 310 Lost Oaks Blvd. in Laredo, TX, and is 67,691 sq. ft. with 109 extended-stay rooms.