Transactions and financing continue as the hospitality industry recovers from the COVID-19 pandemic, with deals including two acquisitions for Peachtree Hotel Group that bring the company’s total for the year to approximately $2 billion.
Peachtree Hotel Group acquires two hotels
Peachtree Hotel Group has acquired the 207-key AC Hotel Miami Aventura and the 233-key Aloft Miami Aventura, in Aventura, FL, which is part of the Miami metropolitan area. Peachtree Hospitality Management, a division of Peachtree Hotel Group, will operate the properties.
These acquisitions are the latest completed by Peachtree closing only weeks following the acquisitions of the 81-key Hampton Inn & Suites and the 60-key La Bellasera Hotel & Suites, both in Paso Robles, CA. For the year, Peachtree has acquired approximately $2 billion in hotel assets and expects to continue to grow through opportunistic hotel acquisitions amid the current hospitality recovery cycle.
“Our growth strategy since Peachtree’s inception is to capitalize on cycle-specific opportunities,” said Greg Friedman, CEO, Peachtree. “Today, we are seeing opportunities to acquire hotels at compelling levels, which hasn’t been available over the last 15 months.
“With strengthening economic tailwinds boosting hotel fundamentals and compelling cap rates compared to other asset classes, the lodging sector is among the best real estate classes for investing. Also, with the ongoing inflationary environment, hotels are an excellent hedge against inflation due to daily adjustments in average daily rates.”
The AC Hotel Miami Aventura is across the street from the Aloft Miami Aventura. The properties opened in 2017 and 2018, respectively. The properties are close to major attractions, including the Aventura Mall and the Aventura Arts & Cultural Center. The hotels also are located near the Aventura Hospital & Medical Center and the Gulfstream Park Racing and Casino.
“These acquisitions are an opportunity to acquire valuable properties in a premier location of Greater Miami and Miami Beach, which has an important mix of corporate and tourism travel,” said Brian Waldman, EVP, investments, Peachtree. “Acquiring these Marriott-branded lifestyle hotels also aligns with our strategy of owning growing RevPAR hotels in destination, downtown and lifestyle center locations.”
The AC Hotel Miami Aventura is located adjacent to an office campus, with expected plans for retail and entertainment developments as well as a new office tower. The Aloft Miami Aventura is located within a mixed-use district, containing residential, office, medical, assisted living and retail components.
The terms of the transactions were not disclosed.
RobertDouglas advises Waterton on the $30M financing for acquisition
RobertDouglas advised Waterton in securing a $30-million, non-recourse senior mortgage for the acquisition and renovation of the Sierra Nevada Resort and Spa in Mammoth Lakes, CA. The floating-rate financing was provided by a leading alternative credit manager focused on high-quality, floating-rate debt.
“The loan was structured to facilitate the acquisition and renovation of this irreplaceable property located in downtown Mammoth,” said Evan Hurd, principal/managing director, RobertDouglas. “The highly institutional sponsorship and thoughtful business plan helped us source a lender who delivered strong pricing and flexibility with regards to the redevelopment financing.”
The Sierra Nevada Resort & Spa was built in 1967 by Jerry Buss, a major real estate developer and former owner of the Los Angeles Lakers. The historic property sits on 6.1-acres in downtown Mammoth Lakes and has 149 guestrooms. The resort will undergo a transformational renovation including the addition of 30 new keys to the property. The resort will be repositioned as a boutique, outdoor lifestyle hotel with 179-keys following the renovation.
Mumford advises on two transactions
Mumford Company, a full-service hotel advisory firm, has revealed the recent sales of the Best Western Historic District located in Williamsburg, VA, and the Microtel Inn located in Erie, PA, in separate transactions.
The new owners of the 140-unit Best Western in Williamsburg plan to complete mainly cosmetic renovations and keep the property in the Best Western system. Ed James and Steve Kirby, both Mumford Company managing principals, along with Carter Willcox, associate in the company’s Newport News, VA, headquarters represented the seller in the transaction.
The purchaser of the Microtel Inn of Erie plans extensive renovations and a conversion to the Sleep Inn brand. Mumford’s James, Kirby, George Arvanitis (Chicago) and Justin Pinkard (Washington, DC) represented the seller.