Who’s Buying, Selling and Financing?

NATIONAL REPORT—Xenia Hotels & Resorts, HSF, JLL and Mag Mile have all completed hotel transactions. Here’s more on the recent deals across the industry:

Xenia Hotels & Resorts Acquires Hyatt Regency Portland
Xenia Hotels & Resorts Inc. has acquired the newly developed 600-room Hyatt Regency Portland at the Oregon Convention Center located in Portland, OR for a purchase price of $190 million, or approximately $317,000 per key. The purchase price includes the complete development cost of the hotel, as well as pre-opening and startup costs, working capital and all supplies to ensure the hotel was fully operational upon opening. The acquisition was funded with cash available on the company’s balance sheet and its senior unsecured credit facility. The company doesn’t anticipate the hotel to materially impact the company’s EBITDA during the remainder of 2019. The hotel is located in downtown Portland’s Lloyd neighborhood close to the Oregon Convention Center and Legacy Medical Research Institute.

Xenia Hotels & Resorts Sells Kentucky and Chicago Properties
Xenia Hotels & Resorts Inc. has completed the sale of the 409-room Marriott Griffin Gate Resort & Spa in Lexington, KY for $51.5 million. The sale price represents a 7.1x multiple on the resort’s trailing 12-month hotel EBITDA as of Nov. 30. Inclusive of estimated required capital expenditures of approximately $30 million, the price reflects an 11.2x trailing 12-month hotel EBITDA multiple.

Additionally, the company has sold the 113-room Marriott Chicago at Medical District/UIC in Chicago for $10 million. This pricing represents a 12.1x multiple on this hotel’s trailing 12-month EBITDA as of Nov. 30. The company doesn’t anticipate either transaction to materially impact the company’s EBITDA during the remainder of 2019.

Blue Sky Hospitality Solutions Adds to Portfolio

Blue Sky Hospitality COO David Fincannon revealed the completion of two separate hotel transactions: the 236-suite Embassy Suites by Hilton Boca Raton in Florida, and the 111- room Hampton Inn & Suites Mahwah in New Jersey. The company plans to invest $10 million to upgrade both hotels.

Embassy Suites by Hilton Boca Raton

Located between Interstate 95 and Yamato Rd. at 661 NW 53rd St., the seven-story Embassy Suites by Hilton Boca Raton is a short distance from West Palm beaches, Mizner Park and numerous dining, retail and business outlets. The hotel lobby has a sleek, open-floor plan with water features and greenery that spill into the atrium. Two-room suites include a separate living, two televisions, mini refrigerator, microwave, wet bar, sofa bed and WiFi. Additional hotel amenities include an 24/7 fitness center, outdoor heated pool, business center and 15,000 sq. ft. of meeting space. There’s also complimentary, cooked-to-order breakfast and/or an evening reception.

Hampton Inn & Suites Mahwah

Situated at 290 Route 17 Corporate Dr., the Hampton Inn & Suites Mahwah is proximate to Ramapo College and Paramus Park and a short drive to downtown New York City. Amenities include indoor pool, 24-hour fitness center, business center and 1,000 sq. ft. of meeting space. In addition, there’s the brand’s signature free, hot breakfast with healthy options; On the Run breakfast bags; and free WiFi in every room.

HSF Closes on Loan for Texas Hotel
Dallas-based HALL Structured Finance (HSF) has closed a new first lien construction loan totaling $80 million to finance the development of The Loren at Lady Bird Lake in Austin, TX. The development, which will include a 108-room boutique hotel and adjacent 26-home luxury condominium tower, is slated to open in first quarter 2022. The new hotel will be the first property by The Loren Hotel Group in the U.S., following the launch of The Loren at Pink Beach in Bermuda in 2017. The project is being developed by C12 Capital Management LP/Sardis Developments. Michael Landon with CBRE sourced the financing for the project.

JLL Arranges Construction Financing for Boston Property
JLL has arranged $53.8 million in construction financing in the form of a participating mortgage for the development of Cambria Somerville-Cambridge, a new 163-room, full-service hotel in the infill Boston-area community of Somerville, MA. JLL worked on behalf of The Noannet Group to arrange the financing with a debt fund advised by UBS Asset Management Real Estate & Private Markets. The Cambria Somerville-Cambridge, which is part of the Choice Hotels brand family, is expected to open in the winter of 2020. The JLL Capital Markets debt placement team representing the developer was led by Senior Managing Director Riaz Cassum and Managing Director Anthony Cutone.

Mag Mile Completes Loan for Florida Hotel
Mag Mile Capital’s SVP Francisco Nacorda has completed a $7.5 million non-recourse, CMBS loan on behalf of The Ponce St Augustine Hotel in St. Augustine, FL. An independent, boutique and beachfront hotel, The Ponce was recently renovated in mid-2018. The two-story property has traditional rooms and suites as well as on-site parking and a swimming pool. Mag Mile Capital secured a 10-year fixed rate, non-recourse CMBS loan with a 25-year amortization at a relatively low interest rate that paid off the borrower’s current loan, closings costs and provided them with a cash-out.

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