Among recent transactions, Dynamic City Capital has acquired the Hyatt Place hotel in downtown San Franciso near the home of the Giants baseball team; Host Hotels & Resorts has purchased the Hotel Van Zandt in Austin and has sold the Sheraton Boston; JMREI and Lionshead Capital Partners have acquired a Courtyard by Marriott in Alphraretta, GA; and Crystal Investment Property has facilitated the sale of the Outlook Inn and the Water’s Edge Suites in Washington.
DCC acquires San Francisco Hyatt Place
Dynamic City Capital (DCC), a Utah-based real estate investment firm focused on acquiring and developing premium-branded hotels, has acquired the Hyatt Place San Francisco Downtown. The hotel’s corner location is less than a half-block from Oracle Park, home of Major League Baseball’s San Francisco Giants.
The 12-story hotel (shown above) features 230 guestrooms, 4,300 sq. ft. of retail space, a lobby bar and a 24/7 market. It is located between the South of Market (SoMa) and Mission Bay neighborhoods, close to Chase Arena, home to the NBA’s Golden State Warriors and the Moscone Convention Center. The hotel opened in January 2019.
This purchase early in 2022 follows the purchase of seven properties across the U.S. in 2021.
Host Hotels & Resorts acquires Hotel Van Zandt, sells Sheraton Boston
Host Hotels & Resorts Inc. has acquired the fee simple interest in the Hotel Van Zandt, a 319-room luxury lifestyle hotel in Austin for a purchase price of approximately $246 million including its $4-million FF&E reserve. The net acquisition price of approximately $242 million represents a 13.2x multiple on 2019 EBITDA and stabilization is expected in the 2025-2027 timeframe at approximately 10-12x EBITDA.
The company funded the acquisition with approximately $140 million in proceeds from recent dispositions, and it assumed approximately $101.5 million of existing secured debt. The debt matures in 2027, and the interest rate is fixed at an annual rate of 4.67%.
The hotel opened in 2015 with rooms that range in size from 330-1,100 sq. ft., including 52 suites. It offers 13,000 sq. ft. of indoor meeting space and three F&B outlets, including a rooftop pool bar and a full-service restaurant with a stage and nightly live music.
Hotel Van Zandt is located in Austin’s Rainey Street district, the most popular entertainment district in the downtown area, according to the company. The Rainey Street submarket is poised to benefit from several nearby mixed-use developments currently under construction or in planning, as well as the $1.2-billion expansion of the convention center close to the hotel.
In addition to the Hotel Van Zandt acquisition, the company has sold the 1,220-room Sheraton Boston for approximately $233 million. The sale price represents a 14.2x EBITDA multiple on 2019 EBITDA, which includes approximately $135 million of estimated foregone capital expenditures over the next five years. In connection with the sale, the company is providing a $163-million bridge loan to the purchaser.
JMREI, Lionshead acquire Courtyard in Atlanta suburb
JMREI and Lionshead Capital Partners have acquired the 115-room Courtyard By Marriott Atlanta Alpharetta/Avalon Area, with asset management by White Label Asset Management. The new ownership team also revealed that Marriott International’s property management division—Managed by Marriott (MxM)—will run the hotel.
The property is located near Avalon, a luxury destination featuring shopping, restaurants and a 12-screen theater. Opened in 2019, the hotel features The Bistro—Eat. Drink. Connect., 700 sq. ft. of meeting space, a fitness center and an indoor pool. Guestrooms have free WiFi, a 55-in. Smart TV and a mini-refrigerator, with some rooms now offering a Peloton bike.
Crystal Investment Property facilitates sale of Outlook Inn, Water’s Edge Suites
Crystal Investment Property LLC, a member of Hotel Brokers International, has facilitated the sale of the Outlook Inn and Water’s Edge Suites in Eastsound, WA.
CIP represented the seller of the Outlook Inn on Orcas Island, while the new investment entity includes the original owners, The Farish Family, as well as another family with deep ties in the Orcas community.
Outlook Inn is a 41-key, upscale, independent, full-service hotel located in Eastsound Village on Orcas Island. This historic hotel includes three buildings with water views and beach access. It features the New Leaf Cafe restaurant with patio seating and a full bar, as well as flexible ceremony and reception spaces, gardens with a chapel and event catering. Suites include gas fireplaces, kitchenettes and two-person Jacuzzi tubs.
Also included in the sale were the newly developed Water’s Edge Suites. These five luxury accommodations are the closest suites to the beach in the San Juan Islands, each with views of Fishing Bay and Indian Island.
The Outlook Inn, New Leaf Cafe and the Water’s Edge Suites are now part of the Columbia Hospitality management portfolio.
