If the last few days are any indication, the transaction market is on fire, with 17 properties changing hands.
Churchwick Partners and Rockledge purchase nine extended-stay properties
In conjunction with Churchwick Partners, David Kaye and Joe Listhaus of Rockledge have purchased nine extended-stay hotels across six states. The company plans to buy 100 more in the next 24 months.
The total transactions consisted of 1,085 keys that were sold by three different sellers. The hotels are in the following states: Alabama (2), Ohio (2), Tennessee (2), Colorado (1), Illinois (1) and New York (1).
Rockledge and Churchwick are partnering with J&P Asset Management to bring a fresh operating perspective to these assets, the companies reported. One asset was bought through auction, one fully on market and the seven others were part of the larger Sonesta portfolio and brokered by CBRE. The brands involved were Choice Hotels International, IHG and Sonesta.
Rockledge and Churchwick Partners have formed a partnership backed with decades of combined experience in real estate, investment banking and specialty finance. The partnership enables the group to bring industry leading deal-making and operational capabilities to facilitate rapid growth, the companies report.
“The Sonesta transaction presented a generational opportunity for an entrepreneurial team like Churchwick and Rockledge to reimagine what the customer experience can look like in hospitality,” said Jaime Gitler, partner, Churchwick Partners. “Through the worst operating environment since the Great Depression, the extended-stay hotel model has provided predictable and durable cash flows. We are excited to deploy our process to maximize the potential of these assets and enhance the customer experience for our guests.”
Mohr Capital acquires Doubletree Austin
Mohr Capital, a Dallas-based privately held real estate investment firm, has acquired the 350-room DoubleTree by Hilton Austin for an undisclosed amount. The acquisition marks the company’s first hospitality investment.
The six-story hotel has almost 25,000 sq. ft. of meeting space including a ballroom. The ballroom will be upgraded, along with the guestrooms, elevators and common spaces. In all, the company plans to invest $11 million to upgrade the property, which is located in Central Austin. As part of the acquisition process, Mohr Capital brought in HEI Hotels & Resorts to manage the hotel on its behalf.
“This is the beginning of a new vertical for Mohr Capital, and we anticipate making further investments in the hospitality industry,” said Bob Mohr, chairman, Mohr Capital. “We have been looking to get into the hospitality business for a few years. The pandemic delayed our initial investment, but this was a perfect opportunity with one of the best-performing hotels in the country during the pandemic. We believe there is a real opportunity to acquire similar assets in specific growth markets across the country, especially when we are working alongside an experienced manager like HEI.”
Hodges Ward Elliott Managing Director John Bourret and Director Austin Brooks represented the seller.
Foxden Hospitality completes sale of Dive Palm Springs
Foxden Hospitality, a California-based luxury hospitality management company, has sold boutique hotel Dive Palm Springs to Mariners Group for $5.15 million. The sale, at $468,000 per key, marks the highest recorded price in history for any hotel in Palm Springs and the surrounding Coachella Valley, according to the company.
Dive Palm Springs emerged in 2019 following a renovation led by Foxden founders Dale and Brookelyn Fox, GM Abdi Manavi and interior designer Vanessa Schreiber. Transporting guests back to the casual elegance of St. Tropez in the ’60s, the 11-room property combines original murals and vintage artwork, contemporary guestrooms, an original Libott swimming pool and a half-acre of private verdant grounds. Dive accelerated its growth despite the pandemic, registering one of the highest occupancy and ADR of any Palm Springs hotel during 2020 and 2021.
The Siegel Group makes three-property acquisition
The Siegel Group, a real estate investment and management company, has acquired three extended-stay properties for just under $18.94 million.
With these acquisitions, the company has expanded its Siegel Select brand into the new markets of Oklahoma City, Houston and San Antonio, and increases the total number of Siegel Suites and Siegel Select properties throughout the U.S. to 59.
The company will be operating each property under its Siegel Select brand, which provides the option of either short-term daily stays or longer-term extended-stay accommodations. These newest locations will be renamed Siegel Select Oklahoma City, Siegel Select Houston and Siegel Select San Antonio.
The three-property portfolio, comprising 20 buildings spread out over 10.6 acres, totals 175,444 sq. ft. and is made up of 382 studio, one- and two-bedroom units all containing kitchenettes. Each property was previously operated under a different extended-stay brand. All properties are in good condition with minimal deferred maintenance issues. As part of the repositioning process, The Siegel Group will be making cosmetic room upgrades and facade and branding improvements to each of the properties.
Mumford Company completes the acquisition of the Hampton Inn & Suites of Port Arthur, TX
Mumford Company, a full-service hotel advisory firm, has closed on the sale of the 72-unit Hampton Inn & Suites of Port Arthur, TX. The property was sold via the Ten-X platform where more than 20 prospects qualified to bid and seven participated in the process.
Steve Kirby, managing principal in the firm’s Atlanta office; Ed James, managing principal in the firm’s Newport News office; and Ryan Patterson, VP in the firm’s Dallas office, represented the selling entity, special servicer LNR Partners Inc. BH Hospitality Management, a San Antonio based, multiproperty owner and operator, purchased the property via newly formed entity, Krishna Port Arthur LLC. The purchasers plan to complete significant renovations and continue to operate as a Hampton Inn & Suites.
Certares and HRI Hospitality acquire two properties
Affiliates of Certares Real Estate Management LLC and HRI Hospitality LLC have added two properties to their portfolio: the DoubleTree Suites by Hilton Hotel Doheny Beach in Dana Point, CA, and the Hilton San Antonio Hill Country in San Antonio.
The 196-room DoubleTree Suites by Hilton Hotel Doheny Beach is close to beaches and Doheny Beach State Park and offers all-suite accommodations, an outdoor pool, a 24-hour fitness center, 13,643 sq. ft. of indoor/outdoor event space and two dining options, including Longboard Rooftop Lounge, offering panoramic views of the Pacific Ocean.
The 226-room Hilton San Antonio Hill Country has 55 guestroom suites, three heated outdoor pools and a 24-hour fitness center. The three dining options include the Spur Texas Kitchen & Bar, a grab-and-go café and a seasonal pool bar that also hosts weekend cookouts. The property has 13 event rooms totaling more than 12,640 sq. ft., allowing hosts to create memorable weddings, events or meetings. Ideal for both leisure and business travelers, the resort-style property is located near Hill Country Golf Club, SeaWorld and numerous shops, restaurants and entertainment options.
Both hotels will undergo comprehensive renovations to their public spaces and guestrooms, with the Dana Point being rebranded within the Hilton brand family, upon completion of the renovation in summer 2023.