NATIONAL REPORT—Hotel Business is tracking transactions in the hospitality industry. Hunter Hotel Advisors, Lingerfelt Commonwealth Partners, VICI Properties and Crystal Investment Property have recently participated in deals. Here are the details:
Hunter Hotel Advisors Completes Sale of Two Properties
Hunter Hotel Advisors has completed the sale of Hampton Inn & Suites Vilano Beach, St. Augustine, FL, to Pharos Hospitality from MCR Group. Additionally the investment advisory firm represented Rockwood Capital in the selling of Courtyard by Marriott in Cranbury, NJ, to Canon Hospitality Management.
Lingerfelt Commonwealth Partners Sells Five Hotels
Lingerfelt Commonwealth Partners has sold a portfolio of five hotels in Orlando, FL; Atlanta; and Charlotte, NC. The hotels were sold by Lingerfelt Commonwealth to AD1 Global for $92.5 million. The portfolio, totaling 758 rooms, is composed of Fairfield Inn & Suites by Marriott Orlando Lake Buena Vista; Fairfield Inn by Marriott Orlando Airport; DoubleTree by Hilton Atlanta North Druid Hills – Emory Are; Hampton Inn Atlanta – North Druid Hills; and Courtyard by Marriott Charlotte Gastonia. Lingerfelt Commonwealth acquired the hotels in January 2015 for $68.5 million.
Crystal Investment Property brokers the sale of Americas Best Value Inn
Crystal Investment Property (CIP) has brokered the sale of the Americas Best Value Inn in Pendleton, OR. CIP, a licensed Oregon brokerage, represented the seller in the sale. Joseph P. Kennedy, resident of CIP, worked closely with the seller and buyer, as well as the parties’ other professionals, to negotiate a mutually acceptable sale. The final sale price is confidential.
VICI Properties Completes Acquisition of Harrah’s Philadelphia and Lease Modifications
VICI Properties has completed the previously disclosed transactions with Caesars Entertainment Corporation to acquire, and lease back, all of the land and real estate assets associated with Harrah’s Philadelphia and to modify the company’s formation leases and the HLV lease.
Harrah’s Philadelphia was acquired for a purchase price of $241.5 million, which was reduced by $159 million to reflect the aggregate net present value of the lease modifications, resulting in a net cash consideration of $82.5 million, excluding transaction costs. The company funded the net purchase price using available cash. The Harrah’s Philadelphia property provides for initial annual rent of $21 million, which is included in the non-CPLV Lease (as defined below) pursuant to the lease modifications. Additionally, the non-CPLV Lease and Joliet Lease were amended to provide annual rent escalators of 1.5% for lease years two through five, which will commence retroactive to Nov. 1, 2018.
In connection with the lease modifications, the CPLV Lease was modified to include Octavius Tower at Caesars Palace, which is owned by the Company and leased back to a subsidiary of Caesars. The company previously acquired Octavius Tower on July 11, 2018 for $507.5 million, whereupon VICI Properties began receiving $35 million in annual rent pursuant to a separate ground lease.