INTERNATIONAL REPORT—From hotel portfolios to independent hotels, buyers and sellers are closing deals. Here’s a look at some recent transactions:
Starwood Capital Group Acquires Sofitel Budapest Chain Bridge Hotel
Starwood Capital Group has entered, through a controlled affiliate, into the sale and management back transaction to acquire the Sofitel Budapest Chain Bridge Hotel from Orbis Hotel Group. The 357-room Hungary hotel is being acquired for approximately $89.1 million, or €75 million, subject to the approval of the European Union Merger Control Office. The hotel will undergo an extensive restoration and renovation plan.
“We are delighted to be acquiring this iconic European hotel in this high-demand hospitality market, while partnering with Accor and Orbis on this transaction,” said Keith Evans, VP, European Hotels at Starwood Capital Group. “With its irreplaceable location and strong cash flow, the hotel has attractive growth and significant repositioning potential. We look forward to investing in this property and leveraging Starwood Capital Group’s hospitality expertise to help drive future growth together with our partners at Accor and Orbis.”
Gilles Clavie, president and CEO of Orbis Hotel Group, added, “This project opens a partnership for potential cooperation in the future. In line with Orbis Hotel Group’s portfolio strategy, the aim of the sale and management back transaction of Sofitel Budapest Chain Bridge is gaining financing for further development in the region and increasing of the return on capital invested, reinforcing our sustainable growth.”
Summit Hotel Properties Completes $164M Portfolio Acquisition
Summit Hotel Properties Inc. has completed the previously announced acquisition of four hotels with a combined total of 652 guestrooms for an aggregate purchase price of $164 million, or approximately $252,000 per key. The portfolio includes the 207-guestroom Courtyard New Haven at Yale in Connecticut, the 148-guestroom Hilton Garden Inn Boston/Waltham, the 175-guestroom Residence Inn Cleveland Downtown, and the 122-guestroom Homewood Suites by Hilton Tucson/St. Philip’s Plaza University in Arizona.
The Silverstone Inn Sold
Crystal Investment Property LLC (CIP) has arranged the sale of The Silverstone Inn, Silverstone, Idaho. The company exclusively represented the seller in the sale. Joseph P. Kennedy, president of CIP, worked closely with the seller and buyer, as well as lenders and other professionals, to negotiate a mutually acceptable sale. The final sale price was confidential.
The 99-key, select-service, independent hotel offers a mix of room, interior corridors, indoor pool and spa and truck/bus parking. The property offers visibility from the freeway and is across the street from a Flying J Travel Center. The property was renovated by the seller with more than $450,000 of recent capital improvements and upgrades.
HREC Arranges Sale of Hawthorn Suites by Wyndham Atlanta Perimeter
HREC Investment Advisors has arranged the sale of the 128-guestroom Hawthorn Suites by Wyndham Atlanta Perimeter located in Atlanta. The property was acquired by a local private equity investor.
Monty Levy, managing director in the HREC Investment Advisors’ Atlanta office and Bill Murney, managing director in the Phoenix office, exclusively represented the seller, a West Coast-based private equity group, in this transaction.
The Hawthorn Suites by Wyndham Atlanta Perimeter is situated in Atlanta’s Central Perimeter Center business district. Major employers proximate to the hotel include IBM, UPS, CISCO, AT&T, Hewlett Packard, Cox Enterprises and JAS Worldwide. Additionally, Mercedes-Benz USA plans to build its new 250,000-sq.-ft. office headquarters less than one mile from the hotel (with the street on which the hotel is located being renamed after Mercedes-Benz in the near future). Furthermore, State Farm is developing a 2-million sq.-ft. mixed-use complex near Perimeter Mall located less than one mile from the hotel.