INTERNATIONAL REPORT—Hotel Business is tracking mergers and acquisitions as well as other transactions in the industry. Here’s a look at recent activity from PMR Hospitality, Valor Hospitality, Benchmark, and others.
PMR to Merge with Valor
PMR Hospitality Partners, a South African-based full-service hospitality management and advisory company, is merging with Atlanta-based Valor Hospitality Partners, which was formed by Euan McGlashan and Steve Cesinger in 2012. Terms of the merger were not disclosed.
PMR Hospitality Partners—formed in 2013 by co-owners and Managing Partners Tony Romer-Lee, Euan McGlashan, Michael Pownall and Graham Wood—has grown substantially on the African continent over the past five years and will now operate as Valor Hospitality Partners Africa.
“We all realized that joining forces globally made perfect sense and, in a business where multiple management companies exist yet none with our full-service strength, professionalism and abilities, merging was a massive win – win for both parties,” said Valor Hospitality Partners Founder McGlashan. “Our perfectly aligned core values of integrity, courage, transparency and tenacity mean we could not be more pleased to have found a partner with such a strong cultural fit with a longstanding, highly regarded reputation in the hospitality industry.”
Union Investment Acquires Portfolio from Benchmark
Union Investment has secured a portfolio of four hotel development projects from Benchmark Real Estate Development via a forward purchase agreement.
Three hotels to be built in the German cities of Dresden, Oberhausen, and Eschborn, will be transferred to the holdings of open-ended real estate fund immofonds 1. The fund is marketed exclusively in Austria. An additional planned hotel property in Freiburg im Breisgau, Germany is being acquired for special fund UII Hotel Nr. 1. The parties agreed not to disclose the purchase price. The portfolio contains two future Super 8-branded hotels and two planned long-stay formats by Hyatt House and Adagio Access.
Long-term leases with a 25-year term have been agreed for all four development projects. Union Investment was advised on the transaction by Clifford Chance. Law firm Bornheim und Partner and Berlin-based consultancy Colliers International Hotel supported benchmark.
Destination Residences Hawaii Acquires Classic Resorts
Destination Residences Hawaii has acquired Classic Resorts Limited of Lahaina, HI, a collection of five luxury condominium resorts and a portfolio of vacation homes located throughout Maui and the Island of Hawai’i. These properties will expand Destination Residences Hawaii’s impressive footprint throughout the islands, joining Makena Surf, Polo Beach Club, Wailea Beach Villas, Wailea Ekahi Village, Wailea Ekolu Village, Wailea Elua Village, and Wailea Grand Champions on Maui, and The Lodge at Kukui’ula in Poipu, Kaua’i.
Select Group Expands Hotel Portfolio
UAE’s Select Group has completed the acquisition of the Echo Building located in Liverpool, England. Savills, jointly with development managers Paradigm Property Consultants, sold the forward funding and mixed-use redevelopment on behalf of Reach PLC.
Situated in the heart of Liverpool’s commercial district, Echo is scheduled for completion in January 2020. With approximately 300,000 sq. ft. comprising hotel, office, leisure, retail accommodation and basement parking, this redevelopment will create a new mixed-use destination in the city.
The property will comprise an upscale four-star hotel operated under the Innside brand by Meliá. Spread over 17 floors, the hotel will comprise 207 en-suite bedrooms, a contemporary open plan restaurant featuring a show kitchen with a bar and lounge, six fully equipped conference rooms, a double height rooftop Skybar with an outdoor terrace with city views.
Summit Acquires Residence Inn by Marriott Boston Watertown
Summit Hotel Properties Inc. has completed the acquisition of the 150-guestroom Residence Inn by Marriott Boston Watertown and the sale of the 148-guestroom Hyatt Place Fort Myers/at the Forum.
Florida La Quinta Inn & Suites is Acquired
RivieraPoint Invest + Develop has acquired a 77-room La Quinta Inn & Suites in Sebring, FL for $7.25 million. The company plans to invest $1.8 million to reposition it as an upper-midscale hotel under the same flag.
The seller was Tampa-based Liberty Group of Companies. The off-market transaction closed on Oct. 3. Liberty Group will continue to run the hotel, which will remain open during the repositioning work.
RivieraPoint assumed a $4.74-million loan from Wells Fargo for the acquisition. The source of the remaining $4.9 million came from RivieraPoint capital and private equity raised from individual investors in Latin America and the U.S.
Ascent Hospitality Snaps Up The Chattanoogan Hotel
Ascent Hospitality has acquired The Chattanoogan Hotel, a 198-room property. Ascent will completely modernize and renovate the hotel’s upscale guestrooms, meeting rooms, public spaces, as well as the pool and lobby areas, and brand as a Curio Collection by Hilton property. Located at 1201 Broad St. in the heart of downtown Chattanooga, the hotel has views of Lookout Mountain.
DoubleTree by Hilton Burlington Vermont is Sold
RLJ Lodging Trust has sold the 309-room DoubleTree by Hilton Burlington Vermont for $35 million. Based on the trailing 12 months ended August 2018, the sales price represents a 17.3x EBITDA multiple and 4.5% capitalization rate, inclusive of required capital expenditures.
CHC Secures Acquisition Financing for Holiday Inn Express in MD
Cronheim Hotel Capital (CHC) has arranged acquisition financing of $9,240,000 for the Holiday Inn Express located in downtown Baltimore, MD. The loan was placed with a national lender and offered a 10-year term and 30-year amortization.
The 123-key property was previously operated as an independent hotel before being converted to Holiday Inn Express in 2015. During their first year of ownership, the borrower will complete additional improvements to the property which will make it fully compliant with IHG’s current brand standards.