NATIONAL REPORT—Across the U.S., hotels are changing hands and refinancing. Here’s a closer look at the recent industry deals:
Woodmont Lodging, Milestone Companies and Blue Vista Capital Management Enter JV
Woodmont Lodging, Blue Vista Capital Management and Milestone Companies have entered a joint venture recapitalization of the 388-room Sheraton Milwaukee Brookfield Hotel in Wisconsin. Woodmont Lodging and Milestone Hospitality will acquire a minority interest in the hotel and provide asset management services. Blue Vista Capital Management will be the lead investor in the transaction.
The Sheraton Milwaukee Brookfield Hotel is surrounded by more than 2,000 businesses and multiple office and industrial parks. The hotel will also undergo a multimillion-dollar refurbishment starting this winter with a targeted completion date in the spring of 2021. The Sheraton Milwaukee Brookfield Hotel project marks the third hotel transaction completed by Woodmont Lodging, Milestone Companies and Blue Vista since 2018.
Twin River Completes Acquisition of Kansas City and Vicksburg Casinos
Twin River Worldwide Holdings Inc. has completed the previously announced acquisition of Eldorado Resorts Inc.’s subsidiaries that own the Isle of Capri Casino in Kansas City, MO, and the Lady Luck Casino in Vicksburg, MS. The purchase price of the acquisition was $230 million, subject to customary adjustments.
These acquisitions closed just months after Twin River announced its plans to also acquire Eldorado Shreveport Resort and Casino in Shreveport, LA, and the Mont Bleu Resort Casino & Spa in Lake Tahoe, NV, for an aggregate purchase price of $155 million. Separately, the company has entered into an agreement with Caesars Entertainment Corporation and Vici Properties Inc. to acquire Bally’s Atlantic City Hotel & Casino for $25 million in cash. The five properties combined contain 4,860 slots, 2,181 hotel rooms and 189 tables. After acquisition of these properties, the company will operate 12 properties in eight states.
DiamondRock Completes Refinancing of Salt Lake City Marriott Downtown
DiamondRock Hospitality Company has refinanced its only material near-term debt obligation by closing on a $48-million mortgage loan secured by the Salt Lake City Marriott Downtown. The loan proceeds were used to repay the existing $52.5-million mortgage loan secured by the Salt Lake City Marriott Downtown. The new loan matures in January 2022 with an option to extend maturity to January 2023, subject to the satisfaction of certain conditions. The new loan bears interest at LIBOR plus 325 basis points over a 100 basis points LIBOR floor.