NATIONAL REPORT—An acquisition in Virginia, plus a refinancing and two sales on the West Coast; here’s more on financing and transactions happening across the country:
MCR Acquires SpringHill Suites in Fairfax, VA
MCR has acquired the 140-room SpringHill Suites Fairfax Fair Oaks in Fairfax, VA, which received a $1.4-million full renovation last year. The SpringHill Suites Fairfax Fair Oaks has 24-hour fitness and business centers, an indoor pool and meeting space for 40 people.
RLJ Closes Sale of Embassy Suites in Napa, CA
RLJ Lodging Trust has closed on the sale of the 205-room Embassy Suites Napa Valley for $102 million or approximately $498,000 per key.
Based on the hotel’s trailing twelve month results as of May of this year, the sale price equates to a 14.6x EBITDA multiple and a 6.1% capitalization rate, excluding planned capital expenditures. RLJ intends to apply the net proceeds from the sale to pay down its credit facility and for general corporate purposes.
RLH Sells Red Lion Hotel Port Angeles in Washington
RLH Corporation has sold Red Lion Hotel Port Angeles for $19.5 million. The hotel is the eighth of 11 hotels being marketed for sale previously disclosed in Oct. 2017. Red Lion Hotel Port Angeles, along with all other sold hotels, has signed a franchise license agreement to retain its Red Lion brand.
RLH Corporation’s total gain on the sale is expected to be approximately $11.5 million. With this sale, RLH Corporation fully retired the remaining $24.2 million of debt held by Pacific Western Bank applying $15.6 million of proceeds from the sale and the restricted cash associated with the debt. Together with the other seven previously announced sales, RLH Corporation’s gain on sales is approximately $27.4 million.
Sonnenblick-Eichner Company Refinances Hotel Theodore
Sonnenblick-Eichner Company has arranged $50 million of interim first mortgage financing to refinance Hotel Theodore, a 20-story, 153-room boutique hotel located in Seattle.
The floating-rate loan was sized to a debt yield of less than 6% and priced over LIBOR at a spread in the mid-300s. Loan proceeds are being used to refinance the existing acquisition and renovation loan, as well as provide a return of equity to the borrower, Portland, OR-based Provenance Hotels.
In Nov. 2017, Provenance completed a $32-million renovation that included updating the guestrooms, bathrooms, meeting rooms, public spaces and a build-out of the ground floor restaurant space. Amenities include an upscale restaurant and bar, a coffee shop, approximately 4,172 sq. ft. of meeting space and a fitness center.