INTERNATIONAL REPORT—From sales, to a refinancing and a rebranding, here’s what to know on recent transactions around the globe:
Hilton Grand Vacations Gets its First Chicago Property
Hilton Grand Vacations Inc. has entered into a purchase-sale agreement with Related Fund Management and The Chartres Lodging Group to acquire the top six floors of the 26-story DoubleTree by Hilton Hotel Chicago Magnificent Mile, which will be HGV’s first property in this market. The total project investment for HGV is expected to be approximately $54.5 million.
The current property owner will renovate and convert 122 of the existing 500 hotel rooms into 78 studio and one-bedroom timeshare units, all according to HGV’s brand standards. HGV will acquire the inventory in phases, anticipated to begin in the second quarter of 2019. The renovations are scheduled to begin in the fourth quarter of this year, and sales are planned to start in our on-site sales center in the second quarter of 2019.
MidCap Arranges Loan for Three Extended-Stay Hotels
MidCap Funding has arranged a $11.3-million loan for the refinance of a hotel portfolio containing two WoodSpring Suites and one Suburban Extended Stay hotel. Both brands are part of the Choice Hotels International Inc. extended-stay platform. The portfolio represented a total of 363 rooms, with locations in Savannah, GA (WoodSpring Suites); Madison, AL (WoodSpring Suites); and Huntsville, AL (Suburban Extended Stay).
The five-year loan was structured with a 30-year amortization and executed via CMBS. Loan proceeds were used to take out the existing acquisition financing, partially fund a property improvement plan and provide the borrower with cash out proceeds.
Driftwood Hospitality Leverages Ten-X to Sell Hyatt House Houston
Ten-X Commercial revealed that Driftwood Hospitality and CBRE leveraged the Ten-X platform to conduct the sale of Hyatt House Houston. Driftwood Hospitality chose to transact this property using the Ten-X Commercial Managed Bid solution to maximize exposure and achieve market value for the property, while also relying on the Ten-X team to recommend a broker from their preferred network of more than 5,000 brokers.
Managed Bid, a Ten-X Commercial transaction solution, is a hybrid of the Live Bid transaction and a traditional offline transaction. In a managed bid transaction, prospective buyers submit indicative bids so that the seller and their broker can select the top offers to compete in a live auction. For the Hyatt House Houston property, the managed bid solution brought in 288 interested buyers that resulted in four, fully approved buyers and 14 total bids, according to the company.