NATIONAL REPORT—Who is buying, selling or refinancing? The hotel industry is seeing new activity. Here’s a look at what’s happening:
Embassy Suites New York Midtown Manhattan Acquired For $195M
Ashford Hospitality Trust Inc. has completed the acquisition of the 310-room Embassy Suites by Hilton New York Midtown Manhattan for $195 million ($629,000 per key). In connection with this transaction, the company entered into a $145-million non-recourse mortgage loan at closing. The loan has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions.
The newly constructed 310-room, fee-simple, full-service hotel is located in the Midtown section of Manhattan near Times Square and Bryant Park. Amenities include three F&B outlets, 4,000 sq. ft. of flexible meeting space, an outdoor sky lawn, 47-space garage and fitness center.
Sold: Residence Inn in Anaheim, CA
The Residence Inn by Marriott Anaheim Hills Yorba Linda sold for $25.5 million. On behalf of an institutional seller, HFF arranged the sale of the 128-room, select-service, extended-stay hotel in the Orange County community of Anaheim, CA. The hotel was purchased by Pacifica Hotels, which is located in Aliso Viejo, CA.
Mumford Company Completes Sale of Fairfield Inn & Suites
Mumford Company has completed the sale of the 117-room Fairfield Inn & Suites by Marriott Charlottesville University/Downtown Area in Charlottesville, VA.
Steve Kirby and Ed James, managing principals of Mumford Company, represented an affiliate of Atlanta-based Peachtree Hotel Group as the seller’s broker. An affiliate of Griffin Stafford Hospitality purchased the asset as part of a 1031 exchange after the sale of the Home2 Suites by Hilton Durham/Chapel Hill, in Durham, NC.
Days Inn Downtown Raleigh Sold for $6.5M
SVN Hotels has arranged the sale of the Days Inn Downtown Raleigh, NC for $6.5 million. The sale of the 57-unit hotel is in addition to the recent sale of the Hyatt Place in Midtown Raleigh.
Sanjay Mundra and Kevin A. Mishra of SVN Hotels facilitated the deal between Regency Investments LLC and Loden Properties. The new ownership group has plans to reposition the property as The Longleaf Hotel, a boutique hotel.
Braemar Completes $195M Refi of Mortgage Loan
Braemar Hotels & Resorts Inc. has refinanced its Aareal Capital mortgage loan with an existing outstanding balance totaling approximately $187 million and a final maturity date in November 2021.
The new loan was originated by PGIM Real Estate Finance, totals $195 million and has a five-year-term. The loan is interest only and provides for a floating interest rate of LIBOR + 1.70%. The loan remains secured by the same two hotels: the Capital Hilton in Washington, DC, and Hilton La Jolla Torrey Pines in La Jolla, CA. Braemar has a 75% ownership interest in the properties, with Park Hotels & Resorts Inc. holding the remaining 25%.
Financing Arranged for Hampton Inn & Suites – Somerset, NJ
HREC Capital Markets Group arranged $10,054,000 in construction and permanent financing for the soon-to-be-built 101-room Hampton Inn & Suites located in Somerset, NJ. The floating-rate, interest only construction loan will convert to a fixed-rate permanent loan upon completion of the hotel. John Siska, VP, and Mike Armstrong, principal, exclusively represented the borrower in this transaction.