NATIONAL REPORT—Hotel Business has been following transactions in the industry. Here’s what we found:
Park Hotels & Resorts Sells Hilton Rotterdam
Park Hotels & Resorts Inc. has closed on the sale of the 254-room Hilton Rotterdam, located in Rotterdam, Netherlands, for gross proceeds of approximately $62 million, equating to $245,000 per key. When adjusted for Park’s anticipated CapEx for the hotel, the sale price represents a 4.8% capitalization rate on the hotel’s projected 2017 net operating income (5.5% excluding CapEx), or 17.8x the hotel’s projected 2017 EBITDA (15.4x excluding CapEx).
Apple Hospitality REIT Acquires Two Properties
Apple Hospitality REIT Inc. has acquired the 119-room Hampton Inn & Suites by Hilton Atlanta-Downtown and the 144-room Hampton Inn & Suites by Hilton Memphis-Beale St. for a combined purchase price of $63 million, or approximately $240,000 per key.
Ackerman and Greenstone Secure Financing, Sign Deal With IHG
Ackerman & Co. and Greenstone Properties have broken ground and secured financing for the development of the new‐build Crowne Plaza Riverside Village hotel—a five‐story, 180‐key hotel located within the Riverside Village mixed‐use project in North Augusta, SC. The partner companies have signed a 20‐year franchise agreement with IHG. The property is slated to open by the end of 2018.
Ventus Group Launches Search for Joint Venture Equity Partners
Ventus Group has launched its search for joint venture equity partners for “The Fig,” a 4.4-acre, $300 million mixed-use development, located south of L.A. Live/Los Angeles Convention Center and walking distance to the University of Southern California campus and the 160-acre Exposition Park. Eric Bergstrom of Bergstrom Capital Advisors Inc. was selected as the exclusive real estate capital market advisor for Ventus Group. The seven-story project will have approximately 408 residential units for 931 student housing, market-rate, and affordable residents, more than 74,000 sq. ft. of commercial space including creative office space, and numerous destination retail and outdoor dining establishments, and a 298-room dual-branded hotel.