NATIONAL REPORT—Hoteliers are continuing to buy and sell properties throughout the United States. Here are the details:
AJ Capital Partners Acquires The Homestead
Adventurous Journeys (AJ) Capital Partners has acquired The Homestead in Evanston, IL. The eight-story, 91-key neighborhood hotel will run independently as The Homestead prior to and during renovations, which will begin in early 2020. Once completed in fall 2020, the hotel will debut as part of the Graduate Hotels collection.
Created for travelers who seek memory-making journeys, Graduate Hotels is a collection of hotels that reside in dynamic university-anchored cities across the country. Each property celebrates and commemorates the energy of its community while offering an extended retreat to places that often play host to the best days of our lives.
Embassy Suites Laredo Acquired by AWH Partners
AWH Partners LLC, a privately held real estate investment, development and management firm, has purchased the Embassy Suites by Hilton Laredo, a strategic acquisition for the company.
Located in downtown Laredo, TX, the 154-suite property is the only full-service, branded hotel in the market. Spire Hospitality, AWH’s full-service hospitality management company, is now managing the Embassy Suites Laredo and will begin implementing core strategies and procedures to grow operating revenues and profit margins.
Pebblebrook to Sell Topaz Hotel
Pebblebrook Hotel Trust has executed a contract to sell the 99-room Topaz Hotel in Washington, DC, for $33 million to a third party.
The contracted sale price reflects a 19.5x EBITDA multiple and a 4.4% net operating income capitalization rate based on the hotel’s operating performance for 2018. Based on the trailing 12-month period ended June 2019, the contracted sales price reflects an 18.2x EBITDA multiple and a 4.8% net operating income capitalization rate. The net operating income capitalization rates are after an assumed annual capital reserve of 4% of total hotel revenues.
The sale of Topaz Hotel is subject to normal closing conditions, and the company offers no assurances that this sale will be completed on these terms, or at all. The company is targeting to complete the sale in Q4 2019 and continues to be encouraged with pricing levels and overall buyer interest in the investment markets.
HVS Closes Sale of Staybridge in Houston
HVS Brokerage & Advisory has closed on the sale of the 118-key Staybridge Suites Houston West-Westchase located at 9901 United Dr. in Houston.
The property, located in Houston’s Chinatown and built in 2017, was purchased from Damodar LLC by GPI Investment. The all-cash transaction was completed in less than 60 days, despite the challenging lodging dynamics in the Westchase submarket.
HREC Arranges Sale of the Holiday Inn Newark Airport
HREC Investment Advisors has arranged the sale of the 191-guestroom Holiday Inn Newark Airport located in Newark, NJ. The property was acquired by Regal Hospitality Inc., a Columbus, OH-based firm.
HREC Investment Advisors represented the seller, RJB Associates, Limited Partnership, a New Jersey limited partnership and Fundamentals Inc., a New Jersey corporation, during the transaction. The sale was negotiated by Mark Rousseau, SVP in the Atlanta office, and Connie Mong, affiliate broker in New Jersey.