A Look at Recent Hotel Transactions

NATIONAL REPORT—Hotel acquisitions and financing deals are happening across the industry. Here’s a look at transaction activity from AWH Partners, Noble Investment Group, Marcus & Millichap, RobertDouglas, Berkadia and Sonnenblick-Eichner.

AWH Partners Acquires DoubleTree Nashville Downtown

AWH Partners LLC has invested into the DoubleTree by Hilton Nashville Downtown. Located in downtown Nashville, TN, the newly renovated, 341-room hotel is near corporate and leisure demand generators. Newmark Knight Frank (NKF) brokered the sale and financing of the acquisition for the purchaser, an affiliate of The Inland Real Estate Group of Companies Inc. (Inland). Spire Hospitality, AWH’s full-service hospitality management company, is now managing the DoubleTree by Hilton Nashville Downtown for Inland’s affiliate.

DoubleTree by Hilton Downtown Nashville is close to Ryman Auditorium and bars and restaurants on Broadway, as well as Nissan Stadium, Bridgestone Arena, Tennessee State Museum and the Tennessee State Capitol. An early 2019, multimillion-dollar renovation of the hotel introduced a new guestroom design and culinary offerings, alongside 20,000 sq. ft. of meeting and event space, an indoor pool and fitness center.

Noble Investment Group Acquires Hilton Garden Inn Charleston Mt. Pleasant

Noble Investment Group has acquired the Hilton Garden Inn Charleston Mt. Pleasant located between historic downtown Charleston, SC, and the beaches of Isle of Palms and Sullivan’s Island. The Hilton Garden Inn Charleston Mt. Pleasant has 133 guestrooms and suites, a business center and fitness center, a swimming pool, food and beverage options and more than 5,000 sq. ft. of meeting and event space.

Located at the base of the Arthur Ravenel Jr. Bridge, the Hilton Garden Inn Charleston Mt. Pleasant provides direct access to Charleston’s Historic District and access to the area’s corporate, government and leisure demand including the Medical University of South Carolina, the Boeing Company and Volvo.

Marcus & Millichap Arranges Sale of Embassy Suites Boca Raton

Marcus & Millichap has arranged the sale of the Embassy Suites Boca Raton, a 263-room hotel in Boca Raton, FL. Kern and David Altobello, first VP of investments in the firm’s Washington, DC office, represented the seller and procured the buyer. Ryan Nee, first VP and district manager is Marcus & Millichap’s broker of record in Florida.

Constructed in 1985 on approximately six acres, the hotel is near the new Spanish River Blvd. ramps that lead to Florida Atlantic University and Boca Raton Airport. The neighborhood surrounding the property contains restaurants, retail, fitness centers and the corporate headquarters of Office Depot Inc. and ADT Security Services, among others.

RobertDouglas Advises Clarion Partners on the Refinancing of CBM Two Hotels LP Portfolio

RobertDouglas advised Clarion Partners LLC in securing a $684-million, non-recourse senior mortgage, five-year, fixed-rate financing for the refinancing of CBM Two Hotels LP Portfolio, a portfolio consisting of 52 Courtyard by Marriott hotels.

The 7,677-key portfolio is comprised of fee and leasehold interests throughout 25 states and 37 metropolitan areas. Since acquisition in 2005, the sponsor has spent more than $300 million in capital improvements to the portfolio and recently began a $220-million, portfolio-wide renovation that will be completed over the next four years.

Berkadia Arranges Financing for Four Florida Hotels

Berkadia’s Hotels & Hospitality has revealed $140 million in combined financing for four hotel properties that are part of Flamingo Crossings Town Center at the western entrance of the Walt Disney World Resort. The properties include a Residence Inn by Marriott, Fairfield Inn & Suites by Marriott, Home2 Suites by Hilton and Homewood Suites by Hilton. Justin Ownby, senior director of Berkadia’s Tampa office, together with Adrienne Kautzman and Mauricio Rodriguez, directors of Berkadia’s Hotels & Hospitality team, arranged the financing on behalf of Doradus Partners. The four-year, adjustable-rate, non-recourse construction loan was secured through a direct private lender.

The four extended-stay hotel properties, which will be managed by Yedla Management Company Inc., are slated for completion in the fall. They will have a total of 997 guestrooms and suites, along with a parking garage, resort-style pools and a sports facility. Flamingo Crossings Town Center is a development that includes retail, dining and hotels that will cater to resort guests, area vacation-home owners, and Horizon West residents.

Sonnenblick-Eichner Arranges Financing for Hotel in Walnut Creek, CA

Sonnenblick-Eichner Company has arranged interim first mortgage leasehold financing for the Residence Inn by Marriott Walnut Creek, located in Walnut Creek, CA. The non-recourse LIBOR-based loan funded upon completion of construction and the opening of the hotel. The 77% loan-to-cost loan with a credit spread in the low 300s over LIBOR provided a return of cash equity to the borrower and relieves them of the recourse obligations associated with the construction loan.

The Residence Inn by Marriott Walnut Creek is a 160-room, six-story, extended-stay hotel located in downtown Walnut Creek, CA. Amenities at the hotel include food and beverage options, 870 sq. ft. of meeting space, an indoor pool and a fitness room. The hotel is located close to the Walnut Creek BART station, which connects to San Francisco and the surrounding the Bay Area.