RLJ Sells $185M Resort; More Financial Transactions

NATIONAL REPORT—Hotel Business has been following financial transactions, including RLJ Lodging Trust’s $185 million sale of The Vinoy Renaissance St. Petersburg Resort & Golf Club in Florida. Here’s a rundown:

RLJ Lodging Trust Sells The Vinoy Renaissance St. Petersburg Resort & Golf Club

RLJ Lodging Trust has sold the 362-room Vinoy Renaissance St. Petersburg Resort & Golf Club in Florida for total consideration of $188.5 million, consisting of the contractual sales price of $185 million and the release of $3.5 million in member deposits. The total consideration represents approximately $521,000 per key.

The property was acquired by SCG Hospitality LLC, which is led by Tampa Bay Buccaneers co-owner and chairman Bryan Glazer, according to a report in the Tampa Bay Business Journal.

“We are very pleased with the highly accretive valuation this iconic hotel garnered, which further underscores our ability to maximize value from the sale of our non-core assets,” commented Leslie D. Hale, president/CEO. “Our team has made tremendous progress toward achieving our strategic objectives this year and we are well-positioned to continue to unlock the embedded value in our portfolio.”

Based on the operating results for the 12 months ended July 2018, the total consideration equates to a 19.6x EBITDA multiple and 3.9% capitalization rate.

RLJ also recently sold the 152-room DoubleTree Columbia Hotel for $12.9 million, which is located in Columbia, MD, to LTD Hospitality Group and Sefira Capital. Based on the operating results for the 12 months ended July 2018, the sale price equates to a 14.1x EBITDA multiple and 5.6% capitalization rate, inclusive of planned capital expenditures.

In aggregate, over the last 12 months, the company has sold approximately $600 million of assets at an EBITDA multiple of approximately 16x.

Holliday Fenoglio Fowler advised the company on the The Vinoy Renaissance St. Petersburg Resort & Golf Club transaction, while HREC Investment Advisors represented the company on the DoubleTree Columbia Hotel.

Noble Acquires Hilton Garden Inn Atlanta Perimeter Center

Noble Investment Group has acquired the Hilton Garden Inn Atlanta Perimeter Center and will complete a comprehensive guestroom and public area upgrade and renovation.

“The Hilton Garden Inn Atlanta Perimeter Center afforded Noble the opportunity to acquire a high-quality physical asset in one of the Southeast’s fastest growing markets,” said Ben Brunt, Noble principal. “The Perimeter submarket has undergone immense growth in recent years and the Hilton Garden Inn is well situated to capitalize on its expanding demand. The asset enjoys excellent visibility along two primary Atlanta thoroughfares, with outstanding circulation to Perimeter’s deep corporate base and ‘Pill Hill,’ the premier health-care center of Atlanta, with three hospitals, hundreds of physician practices, multiple outpatient centers and support services.”

The hotel has 193 guestrooms and suites, each equipped with an HDTV, refrigerator and microwave. The hotel offers complimentary Internet access throughout the hotel, a 24-hour business center and fitness center, an indoor, heated pool and whirlpool, laundry facilities and a complimentary local shuttle within three miles. The hotel has a full-service restaurant, The Garden Grill, serving breakfast, lunch and dinner, as well as The Branchwater Lounge which has a full bar and an outdoor garden seating area. The hotel also offers 1,800 sq. ft. of flexible meeting and board room space.

HREC Arranges Sale of the Fairfield Inn & Suites Downtown Charlottesville

HREC Investment Advisors has arranged the sale of the 117-guestroom Fairfield Inn & Suites located in Downtown Charlottesville, VA. HREC Investment Advisors represented Titan Hotel Group during the transaction.

The sale was negotiated by Ketan Patel, managing director in the company’s Washington office. Titan Hotel Group is headquartered in Wilkes Barre, PA, and is a developer and operator of select-service hotels in the Mid-Atlantic and Northeast. It currently has 12 hotels under management with another six in construction/development. This is the fourth hotel HREC has sold for this group.

Peachtree Hotel Group, headquartered in Atlanta, acquired the property. It operates, develops and invests in premium-branded, select- and limited-service and extended-stay hotel assets under the Marriott, Hilton, Hyatt, Choice and InterContinental Hotels Group flags. Since its inception, Peachtree has invested in more than $2.2 billion of hotel properties and first mortgage notes. Peachtree’s current portfolio comprises 89 hotel assets totaling 10,991 rooms, including 39 real estate assets and 50 notes.

The Pavilion and Copperstone Inn at Orchard Ridge Farms Have New Ownership

The Pavilion and Copperstone Inn at Orchard Ridge Farms in Rockton, IL, have been purchased by Robert and Michael Prosser, restaurateurs known for the Hoffman House Restaurant and Henrici’s Catering.

Henrici’s Catering has been the exclusive caterer for The Pavilion for the past five years, during which time they’ve been involved in more than 500 stunning and successful events. “Adding the Pavilion and Copperstone Inn to our many properties will only serve to strengthen the event side of our business plan,” said Bob Prosser, president of Henrici’s Management Corporation.

The Prossers are purchasing the 70-acre private estate, Copperstone Inn and The Pavilion, from Richard and Chrissie Spanton. Since opening in 2008, the property has secured a reputation for upscale events and luxurious accommodations while earning numerous wedding industry accolades, according to the new owners.

“The Prossers have a 30-year history of success in the event industry with Hoffman House and Henrici’s Catering,” said Richard Spanton Jr. “Chrissie and I are confident that the new ownership will continue to build on our vision for the property. We couldn’t be happier for the Prossers and our team.”

Thorofare Capital Funds $16-Million Bridge Loan To Refinance Sheraton Silver Spring Hotel

Thorofare Capital (Thorofare), through its bridge lending platform, has provided an affiliate of Integrated Capital LLC with a $16-million short-term senior loan for the refinance of the Sheraton Silver Spring Hotel in the Washington, DC metro area submarket of Silver Spring, MD.

The 229-room, 16-floor full-service hotel was built in 1971 and renovated in 2017. It is managed by Atlanta-based Davidson Hotels & Resorts, one of the largest privately held management companies in the lodging industry.

Proceeds from Thorofare’s 12-month, interest only, non-recourse financing refinanced a bank loan, added capital for ongoing building upgrades and repatriated a portion of the partnership’s equity. Thorofare was able to close less than 10 days from application.

“This well-located Marriott-licensed hotel was an attractive financing opportunity for us to close quickly due to the loan basis, the institutional-quality ownership and the strong cash flow metrics,” said Brendan Miller, Thorofare’s principal/chief investment officer.

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