NATIONAL REPORT—Activity in the hotel industry is heating up, with recent property acquisitions and financing secured. Here are the details:
McNeill Hotel Investors Buys Home2 Suites by Hilton Gainesville
McNeill Hotel Investors has acquired the 95-room, select-service, all-suite Home2 Suites by Hilton Gainesville, adding to the company’s growing portfolio and its geographic footprint in Florida.
Home2 Suites by Hilton Gainesville was completed in 2016 and has a complimentary breakfast, 1,224 sq. ft. of meeting space, fitness room, outdoor pool, two lobby workstation computers and a 24-hour pantry market. The hotel is at 2115 SW 13th St. near the 2,000-acre University of Florida.
The acquisition by McNeill Hotel Investors was facilitated by capital recently secured by McNeill through New York-based Almanac Realty Investors LLC.
Rockbridge, HVMG Acquire Sheraton in Florida
Rockbridge and Hospitality Ventures Management Group (HVMG) acquired the 159-room Sheraton Jacksonville Hotel in Florida, in a joint venture for an undisclosed sum. HVMG also will operate the hotel and oversee a planned $1.25-million property upgrade.
“The Sheraton Jacksonville Hotel marks our fourth hotel in Florida and HVMG’s second Sheraton management takeover in 2018. Over the past 10 years, HVMG has managed 17 hotels and resorts in the state of Florida, representing significant market knowledge and expertise,” said Robert S. Cole, president/CEO, HVMG. “Following the million-dollar-plus renovation, the hotel will enhance both the fitness and meeting space areas, securing its position in the Jacksonville market as the preferred lodging option for area visitors. We are confident these upgrades will be received well by both corporate and leisure guests and maximize profitability.”
HREC Arranges Sale of the Holiday Inn in Virginia
HREC Investment Advisors has arranged the sale of the 107-guestroom Holiday Inn Quantico Center located in Dumfries, VA. HREC Investment Advisors represented the seller Nabria Capital during the transaction. The sale was negotiated by Kevin Hanley, SVP, and Ketan Patel, managing director, both located in the Washington, DC office.
Knighthead Funding Originates $8.5M Con Loan for Hotel in GA
Knighthead Funding LLC has funded an $8.5-million construction loan for the completion of a 104-room Holiday Inn & Suites in the Savannah submarket of Pooler, GA.
The sponsor, a Georgia-based hotel development and management company whose portfolio currently includes flags such as Hilton, Marriott and Holiday Inn had funded the entire development with all equity prior to Knighthead’s involvement. Due to liquidity constraints, the sponsor needed a creative source of capital to get comfortable in funding a project that was approximately 50% completed.
The Greenwich, CT-based lender was able to recognize the strong hotel fundamentals of the Savannah market and underwrite and fund the loan quickly keeping construction downtime and potential losses to a minimum, according to Knighthead VP Brian Sullivan, who led the origination team.
Look Hotel Secures Financing
HREC Capital Markets Group, the dedicated mortgage brokerage team within HREC Investment Advisors, arranged the $7.4 million refinancing of the leasehold interest in the 81-guestroom Look Hotel Red Hook located in Brooklyn, NY. The floating-rate non-recourse loan was provided by a private New York-based investment company. Greg Porter, SVP, and principal Mike Armstrong exclusively represented the borrower and repeat HREC client, Brooklyn Hotel Group.