NATIONAL REPORT—Hotel Business is tracking transactions. Xenia Hotels & Resorts Inc., Easton Pharmaceuticals Inc., Hunter Hotel Advisors and The Plasencia Group were involved in recent deals. Here are the details.
Xenia Hotels & Resorts Acquires Fairmont Pittsburgh for $30M
Xenia Hotels & Resorts has acquired Fairmont Pittsburgh, a 185-room luxury hotel located in Pittsburgh for a purchase price of $30 million, or approximately $162,000 per key. The acquisition was funded with cash available on the company’s balance sheet. The purchase price represents an estimated 11.0x multiple on 2018 forecasted Hotel EBITDA. Xenia currently forecasts that the hotel will generate approximately $0.9 million of Hotel EBITDA during the remainder of 2018.
Easton Pharmaceuticals Reaches Agreement to Take Over Hotel
Easton Pharmaceuticals has reached an agreement on the main terms to take over an operating boutique hotel and real estate asset in the heart of Toronto. After several weeks of negotiations, Easton has reached a consensus on the main terms that will form the final agreement whereby Easton will take ownership of an operating Boutique Hotel located on Bay St. in the heart of Toronto’s Financial District and the city’s main tourist attractions. Once the transaction is completed, Easton has plans in place that will increase revenues to more than $8,000,000 per year, which it intends to implement shortly after closing. The property currently has a value in excess of $17,000,000 CDN and its coveted location makes it a prime re-development opportunity for residential condominiums/office space and hotel at some point in the future. Easton expects to have a final agreement signed by Oct. 16 or shortly thereafter notwithstanding any unforeseen delays on other minor terms still to be agreed to. Full details on property location and business will be made available shortly or once the transaction is completed and approved.
Hunter Hotel Advisors Represent Sale of Country Inn & Suites in Asheville, NC
Hunter Hotel Advisors represented the sale of Country Inn & Suites Asheville West by Raj Patel of Accente Group of Clemson, SC, to Daly Hotel Management of Greensboro, NC. This select-service property has 80 all-suite rooms with views of the Blue Ridge Mountains. The buyer plans to renovate.
The Plasencia Group Arranges Sale of Hyatt Place Fort Myers
The Plasencia Group has arranged the Hyatt Place Fort Myers/at The Forum in Fort Myers, FL. The firm represented Summit Hotel Properties, a publicly-traded lodging real estate investment trust based in Austin, Texas, in the sale of the 148-room hotel. Oliver Companies, a Duluth, MN-based real estate investment and management firm acquired the asset.