Eldorado to Sell Shreveport Resort for $230M; More Hotel Sales

INTERNATIONAL REPORT—Hotels are changing hands across the globe, including the Eldorado Shreveport Resort and Casino ahead of the company’s merger with Caesars. Here’s a look:

Eldorado Shreveport Resort and Casino to be Sold for $230M

Eldorado Resorts Inc. has entered into a definitive agreement to sell the Eldorado Resort and Casino in Shreveport, LA, to Maverick Gaming LLC for $230 million in cash, subject to a working capital adjustment.

The transaction is subject to regulatory approvals, the prior or concurrent closing of Eldorado’s previously announced merger with Caesars Entertainment Corporation, and other customary closing conditions. It is expected to close in 2020.

Tom Reeg, CEO of Eldorado, commented, “The agreement to divest the Eldorado Shreveport is consistent with our continued focus on reducing debt ahead of the expected closing for the Caesars transaction in the first half of 2020.”

Macquarie Capital is acting as exclusive financial advisor and Milbank LLP is acting as legal counsel to Eldorado in connection with the proposed transactions.

Hilton San Jose Acquired

JLL Hotels & Hospitality has closed the $117.55-million sale of the 353-room Hilton San Jose in downtown San Jose, CA, on behalf of the seller, Han’s Holdings Group Ltd.

The 18-story Hilton San Jose is connected by a skybridge to the 550,000-sq.-ft. San Jose McEnery Convention Center. The hotel has 18,375 sq. ft. of meeting and event space, an outdoor pool, 24-hour fitness center, business lounge and the Affinity Restaurant & Bar.

Berkadia Completes $80.1M Sale of Arizona Properties

Berkadia’s Hotels & Hospitality team completed the sale of three hotel properties in Arizona this past December totaling $80.1 million.

The Element by Westin Sedona, the Element Chandler Fashion Center and the Arroyo Roble Hotel & Creekside Villas were sold on behalf of Scottsdale, AZ-based Glacier House Hotels.

The Element by Westin Sedona is a new 117-room hotel slated to open this month. The hotel is near the Red Rock Mountains within the Village of Oak Creek and adjacent to Lisa Dahl restaurant concept Butterfly Burger. It was sold at Certificate of Occupancy to a buyer based in Montana in a 1031 exchange.

The Element Chandler Fashion Center is adjacent to the Chandler Fashion Center, which is one of the largest malls in the Phoenix Metropolitan area. It has 107 guestrooms with fully equipped kitchens and offers free WiFi, complimentary breakfast, a 24-hour fitness center and an outdoor pool.

The Arroyo Roble Hotel & Creekside Villas sold for $31.5 million to buyer Ensemble Real Estate Solutions. It has 66 rooms with private guest balconies and has more than 600 ft. of frontage on Oak Creek. Amenities consist of complimentary breakfast and use of recreational facilities including indoor/outdoor pools, extensive exercise facility, indoor/outdoor whirlpools, steam, sauna, pool tables and tennis and indoor, air-conditioned racquetball courts.

Crowne Plaza Portland-Lake Oswego Sold to BHG Hotels

JLL has closed the sale of, and arranged acquisition financing for, the Crowne Plaza Portland-Lake Oswego, a 161-room, full-service hotel in the Portland, OR-area community of Lake Oswego, OR.

JLL Hotels & Hospitality marketed the property on behalf of the seller. BHG Hotels purchased the asset. Additionally, JLL Capital Markets placed the floating-rate loan with First Interstate Bank.

The property is the only full-service hotel in Lake Oswego, an affluent suburb 10 miles south of downtown Portland and on the west bank of the Willamette River. Opened in 1989, the six-story hotel completed a comprehensive renovation in 2018. Among its amenities are 5,670 sq. ft. of meeting and event space, the Oswego Atrium Restaurant & Bar, a 24-hour business center, 24-hour fitness center, indoor/outdoor pool and IHG Wellness Center with snacks and refreshments for purchase.

MCR Acquires Marriott SpringHill Suites Near Wisconsin’s Lambeau Field

MCR, the fifth-largest hotel owner-operator in the United States, has acquired the 127-room SpringHill Suites by Marriott Green Bay in Wisconsin.

The hotel is close to the NFL’s Green Bay Packers. It has 127 suites with mini refrigerators, coffeemakers and microwaves, an indoor swimming pool and Whirlpool, and 1,020 sq. ft. of meeting and event space for up to 75 people.

The Telford Whitehouse Hotel in England Sold

Property adviser Knight Frank advised Telford College on the sale of the U.K.’s Telford Whitehouse Hotel to hotelier Raj Handa from R & A Hotels Group.

The hotel comprises two parts, with lot one being the freehold for the 90-bedroom hotel that was completed to R & A Hotels Group. Lot two, for which Knight Frank is also the sole selling agent, is held on a 999-year lease for the hotel’s ground-floor gym and spa and its first-floor restaurant and conferencing facilities for up to 400 delegates.

Adjoining Telford Football Club, the property is located three miles west of Telford town center, while Wellington town center is approximately one mile northwest.

“We have received considerable interest from investors attracted by the limited-service offering for the 90-bedroom, purpose-built accommodation block,” said Matthew Smith, partner, Knight Frank Hotels team. “R & A Hotels have an experienced management team with an emphasis on room-led hotel operations, for which this opportunity fits perfectly into the growing portfolio.

Ramada Lakeland Hotel Purchased

Marcus & Millichap has revealed the sale of the Ramada by Wyndham Lakeland, a 157-room hospitality property in Lakeland, FL. The hotel sold for $5.1 million.

Built in 1975 with a 2018 renovation, the 3.88-acre Ramada Lakeland is centrally located between the Tampa and Orlando metro areas, with numerous national retailers and restaurants in the immediate vicinity, including Lakeland square mall, Joker Marchant Stadium and Lake Mirror.

 

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