NATIONAL REPORT—Hotels sales are taking place across the country. Caesars Entertainment, HREC and Ashford Hospitality Trust have all made recent deals:
Caesars Entertainment Sells the Rio All-Suite Hotel & Casino
Caesars Entertainment Corporation has completed the sale of the Rio All-Suite Hotel & Casino in Las Vegas to a company affiliated with Dreamscape Companies, which is owned and controlled by Eric Birnbaum, for $516.3 million (including certain fees, expenses and $40 million in seller financing provided by a Caesars affiliate). In connection with the completion of the sale, a Caesars subsidiary entered into a lease with the buyer under which Caesars will continue to operate the property for a minimum of two years and pay annualized rent of $45 million. The buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year. At the end of the lease term and at the request of the buyer, Caesars may continue to manage the Rio or may provide transition services to the buyer.
HREC Arranges the Sale of Hampton Inn St. Louis
HREC Investment Advisors has arranged the sale of the 122-guestroom Hampton Inn St. Louis located in St. Charles, MO. The property was purchased by St. Charles Hotel Group LLC. HREC Investment Advisors exclusively represented the Los Angeles-based institutional owner on this transaction. The marketing and negotiations were led by Herb Warmbrodt, principal in the Kansas City office, and Jeff Preston, VP in the Chicago office. St. Charles is located directly on the Missouri River and is a northwest suburb of St. Louis. The Hampton Inn is located close to the St. Charles Convention Center and the St. Louis Lambert International Airport.
Ashford Completes Sale of SpringHill Suites Jacksonville
Ashford Hospitality Trust Inc. has completed the sale of the 102-room SpringHill Suites Jacksonville in Jacksonville, FL, for $11.2 million ($109,000 per key). The sales price, inclusive of buyer’s estimated anticipated CapEx of $2.5 million, represents a trailing 12-month cap rate of 5.9% on net operating income and a 14.3x Hotel EBITDA multiple as of Oct. 31. The hotel was unencumbered by debt, and the net proceeds of approximately $10.8 million from the sale will be used for general corporate purposes.