NATIONAL REPORT—Hotel Business is tracking mergers and acquisitions as well as other transactions in the industry. Here’s a look at recent activity from Diamond Resorts, Lodging Partners, Fantini & Gorga and Cronheim Hotel Capital.
Diamond Resorts Expands Urban Footprint with a Capital Efficient Acquisition
Diamond Resorts has entered into an agreement with Inner Circle Investments to acquire six floors of City Place, an existing hotel that will be repositioned as luxury apartments, hotel rooms and vacation ownership units in St. Louis. The repositioning of the property is expected to be complete in early to mid-2020.
Diamond’s six floors will be repositioned into studio, one-bedroom and two-bedroom units and feature separate front desk and VIP areas designated exclusively for Diamond’s members, owners and guests.
“We are excited to expand our global footprint into St. Louis and offer another premier property for our members to enjoy,” said Michael Flaskey, CEO of Diamond Resorts. “St. Louis is a new market for the industry and we are proud that Diamond Resorts will be the only company offering vacation ownership accommodations for the millions of families who explore St. Louis each year. In addition to quality rooms and customer service, members and guests can look forward to a lineup of events, including private concerts and meet-and-greets with our Diamond Celebrities.”
Lodging Partners Arranges Sale of Quality Inn & Suites in SC
Lodging Partners LLC, a member of Hotel Brokers International, has arranged the sale of the 96-guestroom Quality Inn & Suites located on US-501 in Myrtle Beach, SC. Ford Barton, managing principal of Lodging Partners, exclusively marketed the property and arranged the sale on behalf of the seller.
“We were able to create a very competitive bid process and, in the end, secure a strong regional buyer for this asset. We have seen a surge of hotel investors seeking opportunities in the Myrtle Beach market due to the mix of leisure demand generators coupled with the positive outlook of the region,” said Barton.
Fantini & Gorga Arranges $7M Loan for Boutique Hotel in RI
Fantini & Gorga has arranged $7 million dollars in permanent financing for The Dean, a 52 key, four story, boutique hotel located in downtown Providence, RI.
“We expected to generate a lot of interest for this hotel as it has had great occupancy since opening in 2014. The Dean occupies a unique space in the Providence market as one of only two boutique hotels. The property features unique interiors that give a fresh take on comfort and simplicity, while retaining many of the building’s original details, including its mosaic tile flooring and brick façade. It shows how much care has been put into the property which, resulted in a better financing” stated Derek Coulombe, senior managing director, who together with Lindsay Feig, senior analyst, arranged the financing. “We were able to deliver long term financing at a low rate, for this unique property with a regional bank. With this refinancing the borrower was able to return some money to its investors and put some money into future hotel development projects.”
Construction Financing Secured for Residence Inn in Arizona
Cronheim Hotel Capital (CHC) has secured $17,300,000 in construction financing for the development of the Residence Inn by Marriott – Phoenix Mesa East. The loan represents 73% of the sponsor’s total costs and was structured with a three-year floating rate and two, one-year extensions. The Subject encompasses four-stories, 127 rooms, and approximately 800 sq. ft. of meeting space.
The property is being developed upon a 3.32-acre site along East Hampton Ave., directly across from Mountain Vista Medical Center, in Mesa, AZ.