Two Hotels Change Hands

NATIONAL REPORT—Mumford Company and Twin River Worldwide Holdings have entered into hotel sales agreements. Here’s a closer look:

Mumford Company Completes the Sale of the Holiday Inn Express Fairmont, WV
Mumford Company represented the seller of the 71-unit Holiday Inn Express Fairmont, WV, that closed on Sept. 25. David B. Mumford, senior principal in Mumford Company’s Newport News office, along with Justin Pinkard, managing principal in the firm’s Washington, DC office, and Andrew Smith, VP also in the firm’s Washington, DC office, represented Double J Development LLC in the transaction. This was the second closing by Mumford in the last week. Recent sales include Super 8 by Wyndham Gulfport, MS; Baymont Inn & Suites, Jesup, GA; and the Super 8 in South Boston, VA.

Twin River Worldwide Holdings to Acquire Jumer’s Casino & Hotel
Twin River Worldwide Holdings Inc. has entered into an agreement with Delaware North Companies Gaming & Entertainment Inc. to acquire Jumer’s Casino & Hotel in Rock Island, IL, for a purchase price of $120 million in cash. The total consideration for the transaction represents an implied proforma purchase multiple of approximately 7.4x trailing 12 months earnings before interest, taxes, depreciation and amortization (for the period ended Dec. 31, 2019). The multiple excludes the impact of any potential cost synergies or possible revenue enhancement opportunities from operational improvements. Based on Jumer’s Adjusted EBITDA for the year ended Dec. 31, 2019, the acquisition is expected to be immediately accretive to earnings. The company expects to finance the purchase price with a combination of cash on hand, cash from ongoing operations and borrowings under its revolving credit facility. The transaction is expected to close during the second quarter of 2021 subject to receipt of required regulatory approvals and other customary closing conditions and is subject to a customary working capital adjustment.