Who’s Buying or Selling?

NATIONAL REPORT—Hospitality companies are buying and selling properties. Among the dealmakers are CBRE, Pebblebrook Hotel Trust, Crystal Investment Property LLC and Banyan Investment Group, to name a few. Here are the details:

CBRE Arranges Sales of Properties in Michigan
CBRE has arranged the sale of the 62-room Holiday Inn Express & Suites and 57-room Comfort Inn in Iron Mountain, MI, to AJLN Inc. and MGPAN Inc., respectively. CBRE Hotels’ Brian Silberman, Scott Miller, Paul DeLucia and Matt McClure represented the owner, Ardis Inc., in the sale. The Holiday Inn Express & Suites and Comfort Inn in Iron Mountain are located in the Upper Peninsula of Michigan, less than two hours north of Green Bay, WI. Both properties are located a mile from Boss Snowplow, MJ Electric and the headquarters of Systems Control. Iron Mountain is also home to other manufacturing and industrial companies such as CCI Systems, Verso Paper Mill, WE Energies, and Warner Electric.

Pebblebrook Hotel Trust Executes Contract to Sell Rouge Hotel
Pebblebrook has executed a contract to sell the 137-room Rouge Hotel in Washington, DC, for $42 million to a third party.  The contracted sale price reflects a 17.4x EBITDA multiple and a 5% net operating income capitalization rate based on the hotel’s operating performance for 2018. Based on the trailing 12-month period ended in March, the contracted sales price reflects a 17.7x EBITDA multiple and a 4.9% net operating income capitalization rate. The net operating income capitalization rates are after an assumed annual capital reserve of 4% of total hotel revenues. The sale of Rouge Hotel is subject to normal closing conditions, and the company offers no assurances that this sale will be completed on these terms, or at all. The company is targeting to complete the sale in the third quarter and continues to be encouraged with pricing levels and overall buyer interest in the investment markets. Following the completion of the sale, the company’s estimated total net debt to trailing 12-month corporate EBITDA ratio will be approximately 4.6 times.

Crystal Investment Property Brokers the Sale of Rodeway Inn & Suites – Long Beach, WA
CIP has brokered the sale of the Rodeway Inn & Suites in Long Beach, WA. CIP, a licensed Washington brokerage, represented the seller in the sale. Joseph P. Kennedy, president of CIP, worked closely with the seller and buyer, as well as the parties’ other professionals, to negotiate a mutually acceptable sale. The final sale price is confidential.

Rodeway Inn & Suites hotel is a 42-key, economy franchise hotel situated 2.5 blocks from the beach and the boardwalk. Accessible from Highway 101, this hotel is centrally located downtown near to restaurants, shops and a variety of outdoor activities. Ninety minutes from Portland Metro area, amenities include a seasonal pool, guest laundry, WiFi, and a mix of kitchenette, fireplace and pet-friendly rooms. The hotel has two owners’ quarters and an additional apartment.

BIP Acquires and Will Operate Courtyard by Marriott Houston Pearland
Banyan Investment Group (BIP) has acquired and will operate the 110-room Courtyard by Marriott Houston Pearland in Texas. The hotel also provides meeting space for up to 60 people, a business center, a 24/7 fitness center and an outdoor pool.

Blue Sky Hospitality Solutions Acquires New Properties
Blue Sky Hospitality (BSHS) has acquired the 220-room New Orleans Marriott Metairie at Lakeway in LA, and the 615-room Long Island Marriott in Uniondale, NY.

“The hotel cycle is maturing, which creates growth opportunities for experienced operators and investors with a contrarian approach to the industry,” said David Fincannon, COO, BSHS. “We have accumulated a substantial portfolio of managed and owned properties in just six months, and we have a substantial appetite to do more. We currently own and operate all 52 properties in our portfolio and now have the infrastructure, operating systems and structure to take on third-party management contracts. As we grow, we will pivot to focus predominantly on operations on behalf of other ownership groups.”

HREC Arranges Sale of Four Points by Sheraton in DE
HREC Investment Advisors has arranged the sale of the 120-room Four Points by Sheraton Newark Christiana Wilmington located in Newark, DE. HREC exclusively represented the seller during the transaction. The marketing, negotiations and final sale were led by Ketan Patel, managing director in the Washington, DC office, and Andre Collins, an affiliate broker in Delaware.

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