INTERNATIONAL REPORT—Across the globe, hotel companies are making deals. Here’s a closer look at the activity from Park Hotels & Resorts, Alterra Mountain Company, Madison Realty Capital and CHC Capital:
Park Hotels & Resorts Closes on Sale of Conrad Dublin
Park Hotels & Resorts Inc. and its joint venture partners have closed on the sale of their interests in the company that owns the 192-room Conrad Dublin located in Dublin, for gross proceeds of $128 million (€116.4 million), before customary closing adjustments and debt repayment. The gross proceeds equate to approximately $128 million, or $667,000 per key. Park’s pro rata share of gross proceeds was approximately $61 million. The sale price represents a 3.9% capitalization rate on the Hotel’s projected 2019 net operating income, or 22.1x the Hotel’s projected 2019 EBITDA.
Alterra Mountain Company to Acquire Sugarbush Resort in Vermont
Alterra Mountain Company has entered into an agreement to purchase Sugarbush Resort in Vermont, which will bring the company’s total to 15 year-round mountain destinations throughout North America. Sugarbush has a health and recreation club, multiple lodging properties and the Sugarbush Resort Golf Club. Win Smith will stay on as president/COO of Sugarbush Resort. The transaction is expected to close in the first quarter of 2020, and is subject to certain closing conditions, including regulatory approvals. Terms of the transaction were not disclosed.
Madison Realty Capital Provides Loan for Development in Long Island City, NY
Madison Realty Capital (MRC) provided a $46-million construction loan to finalize a new 240-key hotel located on a development site in Long Island City, NY. The building is under construction, and the funding MRC provided will allow the borrower, developer Teddy Li, to finish the project. As part of the loan, MRC secured additional pieces of collateral that the borrower pledged, including a medical facility in Flushing and additional condo units. Upon completion, the property will be a new Staybridge Suites hotel, which will span 190,000 sq. ft. and stand 24 stories tall. The development, which will also include a 25,000-sq-ft. community facility, was designed by architect Gene Kaufman.
CHC Capital Arranges for Refinance of Two Properties in Columbia, SC
CHC Capital has arranged $12.4 million for the refinance of the Hampton Inn and Holiday Inn Express in Columbia, SC for Trinity Hospitality. The loan was placed with a national lender and offered a 10-year term, 30-year amortization and a fixed interest rate locked at 3.99%. The two properties, which are located adjacent to each other, were both developed by the sponsor and the refinance transaction provided an opportunity to return a large amount of equity.