Sales and financing deals continue as Choice has sold once of its Cambria Hotels, plus Peachtree has acquired an Atlanta Canopy property.
Choice sells Cambria Hotel Nashville Downtown for $109.5M
Choice Hotels International Inc. has sold of the Cambria Hotel Nashville Downtown for $109.5 million. In addition, the company entered a new long-term franchise agreement with the buyer, and the hotel will now be managed by Pyramid Global Hospitality.
“The sale of the Cambria Hotel Downtown Nashville and execution of a long-term franchise agreement aligns with our long-term asset-light strategy and continues our history of recycling capital utilized to grow our brands,” said Scott Oaksmith, SVP, real estate and finance, Choice Hotels. “We are pleased that this hotel will continue to be a flagship property for the Cambria brand for years to come.”
The 255-room hotel is located in Nashville’s South of Broadway (SoBro) neighborhood and is a short distance from many of Nashville’s top attractions, including the Music City Center, Bridgestone Arena, Nissan Stadium and Historic Broad St. The property is also near several national and regional corporations, including Nissan North America, Bridgestone Americas Inc., HCA Holdings, Randstad and Electrolux.
Peachtree Hotel Group acquires Canopy Atlanta Midtown Hotel
Peachtree Hotel Group has acquired the 176-room Canopy by Hilton Atlanta Midtown hotel. Peachtree Hospitality Management, a division of Peachtree, will operate the property.
The 15-story lifestyle hotel, which opened in 2018, is located in Midtown Atlanta, which is “one of the hottest markets in the country right now,” said Brian Waldman, chief investment officer, Peachtree, who added, “We are excited to be able to make this investment in our backyard. The Canopy Atlanta Midtown fits our investment criteria of investing in premium-branded hotels in growing submarkets with strong demand drivers.”
The hotel is walkable to the Atlanta Arts MARTA station, Museum of Design Atlanta, Savannah College of Art and Design and the Breman Jewish Heritage Museum, as well as Pershing Point Park, Ansley Park and Piedmont Park. In addition, companies such as NCR, Norfolk Southern, Microsoft, Anthem and Google are some of the high-profile names housed in or moving to Midtown.
“Also, lifestyle hotels, like Canopy, address the growing trend in travel that combines business with leisure,” Waldman said. “While still offering similarities and predictability across the Hilton brand, no two Canopy properties are alike, appealing to today’s discriminating traveler looking for unique experiences.”
KSL Capital Partners acquires the W Maldives and Sheraton Maldives Full Moon Resort & Spa
Affiliates of KSL Capital Partners LLC have acquired the W Maldives and the Sheraton Maldives Full Moon Resort & Spa. The seller was a joint venture between Universal Enterprises and Marriott International. Both properties will continue to be managed by Marriott under their existing brands.
Each resort is located on its own private island. The W Maldives is a short seaplane ride and the Sheraton Maldives Full Moon Resort & Spa is a short speedboat ride from the Maldives Velana International Airport.
W Maldives offers a combination of 77 overwater or beach bungalows with private balconies and private pools. The resort’s house reef features hundreds of different ocean life species, while guests can also enjoy the resort’s private yacht experience, six restaurants and bars and a spa.
The 176-room Sheraton Maldives Full Moon Resort & Spa features a mix of overwater bungalows, oceanview villas and cottages, many with private plunge pools. Guests can enjoy seven restaurants and bars, multiple fresh-water pools, a full-service spa, tennis facilities and the Sheraton Kids’ Club.
“KSL Capital Partners is focused on investing in well-located, high-quality travel and leisure properties,” said Siddhant Jhunjhunwala, director, investments, APAC, KSL. “The Maldives is one of the world’s premier leisure travel tourism destinations and these resorts are two of the best in the market, with the added benefit of being operated by Marriott’s experienced team. We’re pleased to expand our global relationship with Marriott.”
3650 REIT originates two loans totaling more than $80M
3650 REIT, a nationwide commercial real estate lender originating and servicing portfolio loans for relationship borrowers in addition to making other strategic investments, has originated two loans totaling more than $80 million. Each loan carries a term of 10 years, and includes:
- $57.5 million to sponsor Prime Hospitality Group LLC for the refinancing of the Art Ovation Hotel, a full-service hospitality asset in Sarasota, FL
- $14 million to sponsor Klamath Hotel Partners LLC to refinance the Fairfield by Marriott Klamath Falls, a newly built, 92-key, Class A hotel in Klamath Falls, OR
“3650 REIT continues to be one of the most prominent and trusted sources of capital for high-quality, well-capitalized sponsors, enhancing its market-leading position at a time when other sources of capital are pulling back due to challenging market conditions,” said Toby Cobb, cofounder/managing partner, 3650 REIT. “We are able to continue to prudently deploy capital across all market environments due to our experience as owners and investors through multiple market cycles. This, combined with our deep understanding of the capital markets, provides us with a wealth of institutional knowledge that we believe gives us a sustained competitive advantage.”
HSF closes $43M loan Nashville Holiday Inn Express
Dallas-based Hall Structured Finance (HSF), a direct private commercial real estate lender, has originated a $43.1-million first lien construction loan to finance the development of an eight-story, 184-room Holiday Inn Express in Nashville.
The hotel is being developed by Nashville-based firm SiLa Development and will be managed by Triumph Hospitality. It is expected to open in March 2024.
“We are excited to be able to provide financing for this project given Nashville’s growth dynamics and the continued need for new lodging options,” said Donald Braun, president, HSF. “This hotel will serve both business and leisure travelers given its central location near multiple employers and other demand drivers in Nashville’s Midtown neighborhood. We look forward to seeing it begin construction next month.”
The hotel will be within walking distance to major employers and demand generators including Vanderbilt University & Medical Center, HCA TriStar Medical Center, Ascension St. Thomas Hospital, Centennial Park and Sportsplex and numerous restaurants and bars. Amenities at the hotel will include an outdoor infinity edge swimming pool, fitness center, meeting room, convenience market, breakfast area and business center.
“SiLa Developments is excited to position this asset on the historic Rock Block of Nashville,” said Jay Patel, principal, SiLa Developments. “We are eager to deliver an exceptional asset that will create meaningful opportunities and positively impact our team and community. Collaborating with Hall Structured Finance has made the process impactful and easy. We are motivated to begin construction and deliver this exceptional asset to the Midtown/Vanderbilt market.”
Mag Mile Capital SVP Francisco Nacorda sourced the financing for the project.
JLL secures $24.5M in financing for dual-branded Tempe hotel
JLL Capital Markets has arranged $24.5 million in construction financing for the development of the dual-branded Fairfield Inn and TownePlace Suites, a 148-key, select-service hotel in Tempe, AZ.
JLL worked on behalf of the borrower, EKN Development Group, to secure the three-year, floating-rate loan through Hall Structured Finance.
The four-story property will feature 83 keys in the Fairfield Inn and 65 keys for TownePlace Suites. The dual-branded hotel will offer a range of amenities, including a restaurant, bar & lounge, gym, pool and hot tub.
The hotel will be located less than a mile from the Arizona State University campus in Tempe. In addition, Fairfield Inn and TownePlace Suites will be 5.8 miles from the Phoenix Sky Harbor International Airport and is within five miles of nearly 30 million sq. ft. of office space.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Jillian Mariutti, Director Robert Tonnessen and Associate Phil Cadorette, with local support provided by Senior Director Carl Beardsley.
“JLL appreciates EKN Development Group for providing us the opportunity to arrange hotel construction financing on behalf of a strong sponsorship,” said Mariutti. “With the dual-branded concept, the project will appeal to a number of different demographics within Tempe’s dynamic and growing market. The flexible and affordable nature of the two brands will enable them to consistently retain occupancy.”