Recent transactions include Pebblebrook Hotel Trust completing the acquisition of a property in Naples, FL, and CGI Merchant Group purchasing the lease of the Old Post Office Building in Washington, DC, which the company plans to convert to a Waldorf Astoria hotel. Read all about those deals and more below.
Pebblebrook Hotel Trust completes acquisition of Inn on Fifth in Naples, FL
Pebblebrook Hotel Trust has completed the acquisition of the 119-room Inn on Fifth in Naples, FL, for $156 million. As previously reported, the company retained Noble House Hotels & Resorts to manage the independent luxury resort property at the center of Downtown Naples.
The acquisition of Inn on Fifth brings the total number of properties in the company’s portfolio to 54, including 12 drive-to, independent lifestyle resorts and six properties in South Florida.
Pebblebrook funded the acquisition with approximately $78 million of cash and approximately $77.6 million of perpetual preferred operating partnership units (3.104 million units at $25 per unit) with an annual distribution rate of 6.0% and approximately $400,000 of common units.
CGI Merchant Group acquires lease to the Old Post Office Building in DC
CGI Merchant Group LLC (CGI) has acquired the lease to the historic Old Post Office building in Washington, DC. CGI, in partnership with Hilton, plans to relaunch the property as part of the Waldorf Astoria Hotels & Resorts brand.
Located at 1100 Pennsylvania Ave., the property opened in 1899 as Washington, DC’s main post office, was later converted to a federal office building and more recently became the Trump International Hotel Washington, DC.
Construction on the historic property began in 1892. Built in a Romanesque Revival architectural style, it functioned as Washington, DC’s main General Post Office until 1914, at which point it functioned as a federal office building. There are 95 years remaining on the lease, which has been acquired with approval from the owner of the property, the U.S. General Services Administration (GSA).
Dalata sells Clayton Crown Hotel in London
Dalata Hotel Group plc has signed contracts for the sale of the Clayton Crown Hotel, London, and the underlying business, to a company controlled by AG Hotels Group, for a cash consideration of approximately $25.7 million (21 million pounds). The transfer of the business is scheduled to complete by late June.
The Clayton Crown Hotel, a 152-bedroom hotel, located in Cricklewood, London, has always performed well, but was no longer deemed a core hotel asset with Dalata’s increasing strategic focus on central locations, according to the company.
Sonnenblick-Eichner arranges $50M of financing for Pismo Beach, CA, hotel
Sonnenblick-Eichner Company has arranged $50 million of long-term, fixed-rate first mortgage financing for the Cliffs Hotel & Spa, a 162-room, full-service, luxury boutique hotel located on a bluff overlooking the Pacific Ocean in Pismo Beach, CA.
The non-recourse loan was funded by an investment bank and priced at 4.8% with interest-only payments for the entire term of the loan. Proceeds from the loan provided for a return of equity to the borrower in order to purchase a partnership interest.
Located along California’s central coast, the Cliffs Hotel & Spa features direct beach access, Mariso restaurant and bar, a heated outdoor pool, Dia Feliz Spa, The Salt + Sundry retail outlet, fitness and business centers and on/off-site valet parking. The hotel has approximately 27,000 sq. ft. of indoor/outdoor meeting and event space, more than any other hotel in Pismo Beach, according to the company.