Who’s Buying, Selling or Refinancing?

NATIONAL REPORT—Hotel Business is tracking acquisitions and other transactions in the industry. Here’s a look at recent activity from Noble Investment Group, Xenia Hotels & Resorts, HREC and more.

Residence Inn by Marriott Denver City Center Sold for $92M

Xenia Hotels & Resorts Inc. recently sold the 228-suite Residence Inn Denver City Center for a price of $92 million, or approximately $404,000 per key, to Noble Investment Group.

The sale price represents a 12.8x multiple and a 7.1% capitalization rate on the hotel’s trailing twelve-month Hotel EBITDA and net operating income as of November 30, 2018, respectively.

Downtown Denver comprises more than 25 million sq. ft. of Class A office space, a highly dense residential population, and is home to more than 45,000 college students.

The hotel is located in the heart of more than 300 restaurants, three major sports stadiums, the Colorado Convention Center, the Pepsi Center, the Denver Performing Arts Center and a variety of art and history museums. The hotel is also adjacent to the 16th Street Pedestrian Mall, which connects to Union Station, the world-class, multimodal transportation hub with direct-rail connection to Denver International Airport.

MGM Resorts International And MGM Growth Properties Announce Transaction On Park MGM And NoMad Las Vegas

MGM Resorts International and MGM Growth Properties LLC (MGP) have entered into an agreement whereby MGP will pay MGM Resorts consideration of $637.5 million for investments made to reposition Park MGM and NoMad Las Vegas, which was formerly known as Monte Carlo Resort and Casino. As part of this agreement, the annual rent under the existing Master Lease between MGM Resorts and MGP will increase by $50 million.

Rockefeller Capital Management is acting as financial advisor to the conflicts committee of the MGP Board of Directors.

Consistent with the master lease terms, 90% of the increased rent will be contractually fixed to grow at 2% per year until 2022, and thereafter will continue to grow provided a tenant revenue to rent ratio is met. The remaining 10% is payable in percentage rent. The transaction is expected to close in the first quarter of 2019 and is subject to customary closing conditions.

HREC Arranges Sale of Extended Stay America Portfolio

HREC Investment Advisors has arranged the sale of a 16-hotel Extended Stay America (ESA) portfolio. Locations include properties in Arizona, Kansas, Missouri and New Mexico. The buyer was Lodging Advisory Group LLC, a hotel owner, developer and asset manager with offices in Wichita, Denver and Phoenix.

HREC exclusively represented ESA in the transaction. The sale was negotiated by Scott Stephens, COO/senior principal based in the Tampa office, Monty Levy, managing director in the Atlanta office and Herb Warmbrodt in the Kansas City office.

Crystal Investment Property Brokers Sale of America’s Best Value Inn

Crystal Investment Property LLC (CIP) brokered the sale of the Americas Best Value Inn in Pendleton, OR.

The company represented the seller in the sale. The final sale price is confidential.

Americas Best Value Inn Pendleton is a two-story economy franchised hotel with 47 guestrooms with a variety of room styles in Pendleton’s Downtown Core. The property has excellent financials, strong ROI, and a two-bedroom Owner’s Quarters, according to CIP.

Refinancing for Petit Ermitage in West Hollywood

HFF worked on behalf of the borrower to arrange the 10-year, fixed-rate loan with A10 Capital for Petit Ermitage, an 80-room boutique hotel on West Hollywood’s Sunset Strip near Los Angeles.

The four-­story Petit Ermitage’s 80 luxury suites have fireplaces, and range from 350 to 500 sq. ft. The hotel consists of multiple function and lounge spaces with Bohemian designs, including the Firedeck, Garden’s End, Butterfly Bar poolside bar, Master’s Lounge and Cabana, along with a fitness center, rooftop pool and two-level subterranean parking garage.

The HFF debt placement team consisted of senior managing director Paul Brindley, managing director Tony Malk, director Matthew Stewart and analyst Blake Malecha.

Mag Mile Capital Completes $9.9M Loan for Wisconsin Hotel Acquisition

Mag Mile Capital completed a $9.925 million non-recourse, CMBS loan for a 128-room hotel property in Oconomowoc, WI.

Located in Waukesha County, west of Milwaukee, the hotel property is one of several owned by the borrowers, KGNMP Hotels LLC, in Northern Illinois and Wisconsin. Mag Mile Capital was able to secure the 10-year, fixed rate loan at a 5.75% interest rate and a 25-year amortization.

Originally built in 1978 and renovated in 2016, the hotel sits on 5.3 acres of land. Amenities include an outdoor swimming pool and patio, fitness center, business center, a guest laundry room, room service and 12,000 square feet of meeting space.

Embassy Suites New Orleans Convention Center Sold

Hodges Ward Elliott represented the owner in the sale of the Embassy Suites New Orleans Convention Center.

Situated in the Arts/Warehouse District two blocks from the Ernest N. Morial Convention Center, the hotel includes 280 guestrooms, more than 6,000 sq. ft. of dedicated meeting space, Stacks Restaurant and Bar, a fitness center and an outdoor pool.

 

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