NATIONAL REPORT—Hotel properties are changing hands. Here’s a look at the latest deals:
Chatham Lodging Acquires Charleston Courtyard
Chatham Lodging Trust has acquired the 96-room Courtyard by Marriott Charleston Summerville, SC, for $20.2 million, or approximately $210,000 per room.
“This is a high-quality hotel located in Nexton, an emerging mixed-use community that sits in the heart of a rapidly expanding area just outside of Charleston,” said Jeffrey H. Fisher, Chatham’s CEO and president. “This hotel, as well as the adjacent, under-construction, 96-room Residence Inn by Marriott, which we also have under contract to acquire upon opening in the 2018 second quarter, is well located within the Nexton community.
“Volvo is constructing its first American factory, a state-of-the-art, 2.3-million-sq.-ft. facility on nearly 3,000 acres very close to Nexton that will employ approximately 2,000 people and is projected to manufacture 100,000 cars per year. Our hotels will be the nicest and closest hotels to the new factory. This is a thriving area with a lot of upside,” Fisher added. “Other major companies, such as Daimler and Boeing, have significant facilities in the area and have acquired additional land to expand their operations.”
Opened in October 2014, the company noted that the Courtyard will need essentially no additional capital for at least four years.
Chatham funded the purchase through available cash from its recently completed 5,000,000 share offering that raised approximately $109 million. The hotel will be managed by Island Hospitality Management, which is 51% owned by Fisher. Chatham estimates it acquired the property at a year one net operating income capitalization rate of approximately 8%.
Condor Hospitality Trust Under Contract to Sell Iowa Hotel
Condor Hospitality Trust Inc. is under contract to sell one of its legacy hotels, the 41-room Supertel Inn & Conference Center in Creston, IA, for $2.1 million. The deal is expected to close in early 2018. Net proceeds from the anticipated sale will be applied to outstanding debt on the company’s $150-million secured credit facility.
“Given a projected closing of the Supertel Inn & Conference Center in early 2018 and including the recently announced signed contract for our Warsaw legacy hotel, we will have sold nine legacy hotels for gross proceeds of $30.9 million since the beginning of 2017,” said Bill Blackham, Condor’s CEO. “We began the year with thirteen legacy hotels and subsequent to this anticipated sale, Condor will have only four remaining legacy hotels, two of which are listed for sale and are currently being marketed. Our goal is to have at least these two additional legacy hotels either sold or under contract for sale by year-end 2017, though there can be no guarantee that any of these planned dispositions will actually close.”
Hunter Hotel Advisors Closes on Sale of Hyatt Place New Orleans Convention Center
Hunter Hotel Advisors represented the owners of the Hyatt Place New Orleans Convention Center in the sale of the 170-room hotel. Built in 1996, the hotel underwent an $8.8-million renovation to convert to a Hyatt Place, reopening in March 2012.
A New York City-based private equity group purchased the hotel for $32 million. The new owner was attracted to the investment due to its in-place cash flow and its location in downtown New Orleans’ Arts District, directly across from the Ernest N. Morial Convention Center, according to the company.
Teague Hunter, President of Hunter Hotel Advisors, handled the transaction out of company’s headquarters in Atlanta.
Idaho Days Inn Sold by Crystal Investments Property LLC
Crystal Investment Property LLC, a member of Hotel Brokers International, arranged the sale of the Days Inn, Lewiston, Idaho, representing both the seller and the buyer in the sale. The final sale price was not disclosed.
The 62-key property offered strong current cash flow and outstanding future opportunity, according to the company.
Joseph Kennedy, president of Crystal Investment Property said, “Despite some fairly significant hurdles having nothing to do with the property itself, the professionals involved were able to overcome the various issues in order to craft a successful transaction. We are happy to have been instrumental in helping the seller move on to other projects and assist the buyer in purchasing an asset which expands their portfolio and offers them opportunities for years to come. ”