Who’s buying, selling and financing?

Recent transactions include Mission Hill Hospitality acquiring a hotel adjacent to the University of Kansas campus; DSH Hotel Advisors arranging the sale of a Holiday Inn Express & Suites on Florida’s West Coast; and Driftwood Capital originating a $44.5-million loan for the acquisition and refinancing of an economy extended-stay portfolio.

Mission Hill acquires Oread Hotel
Mission Hill Hospitality, a KSL Capital Partners portfolio company, has acquired The Oread Hotel, a 102-key property adjacent to the University of Kansas in Lawrence, KS. It will be branded as Oread Hotel, Tapestry Collection by Hilton. Terms of the deal are undisclosed. The Oread Hotel is Mission Hill Hospitality’s 24th acquisition since the company was launched in March 2021.

“This acquisition presented a unique opportunity to expand our portfolio geographically in a major education market with high demand, offering unparalleled proximity to the University of Kansas,” said Tom Barber, managing director, Mission Hill Hospitality. “Mission Hill Hospitality continues to focus on targeted acquisitions of hand-picked, high-quality assets in strategic locations, with the Oread Hotel representing our first investment in the Midwest.”

Located adjacent to the university entrance, the hotel has views of the campus and football stadium. It features 15,000 sq. ft. of meeting space, a full-service restaurant, a bar, retail space, two outdoor terraces and a fitness center.

The 10-story property was originally developed in 2010 as a 99-key hotel with nine residential condominium units. Planned capital improvements will feature the conversion of three condo units to hotel suites. Additional improvements include upgrades to guest bathrooms, new furnishings and renovated event and public space.

Nearby off-campus attractions include Massachusetts St., a major thoroughfare for retail, dining and nightlife, as well as the Lawrence Arts Center, Watkins Museum of History, the Prairie Park Nature Center, Baker Wetlands and Clinton State Park.

DSH arranges sale of Holiday Inn Express & Suites Port Charlotte
DSH Hotel Advisors’ Dennis S. Hopper, managing principal, and Randy B. Taylor, VP, investments, have arranged the sale of the recently renovated 68-room Holiday Inn Express & Suites Port Charlotte in Port Charlotte, FL. DSH Hotel Advisors represented both the unnamed seller and the buyer, Stanislaw Niziolek.

DSH Hotel Advisors held the exclusive listing with the seller. This listing presented the buyer with a unique opportunity to acquire a fully renovated cash-flowing hotel asset with significant upside potential, and an opportunity for the seller to maximize their net proceeds on the sale of the asset, according to the company. The qualified buyer was identified through private marketing and careful vetting completed by DSH Hotel Advisors.

“Right now, if you’re buying or selling a hotel in Florida, and you are not working with someone from our firm, you’re either missing buying opportunities (if you’re a buyer) or missing buyers that could potentially pay more for your property than anyone else (if you are a seller),” said Hopper. “The seller entrusted our firm to privately market, sell and maximize the sale price of this asset. We offered the hotel for sale on a private and confidential basis, and with our significant reach to buyers for this type of property, we were able to bring multiple offers to the table for the seller to select from.”

Driftwood originates $44.5M loan for acquisition, refinancing of economy portfolio
Driftwood Capital has provided financing to an institutional owner of hospitality assets across the U.S. for the acquisition of an economy extended-stay hotel portfolio located predominantly in the Southeast. The proceeds cover the acquisition of 26 hotels, the majority of which operate under the G6 Hospitality brands (Motel 6 and Studio 6), totaling 3,067 keys, along with the refinancing of an additional 15 hotels. The sponsor is the second largest economy hotel owner in the U.S., with an economy and select-service portfolio that now includes 109 hotel assets totaling more than 12,000 keys, according to Driftwood.

Through its lending fund, Driftwood Lending Partners LP, Driftwood originated a three-year, $44.5-million mezzanine loan, with two one-year extension options. The mezzanine loan sits behind a $226-million senior facility, originated by Starwood Property Trust.

The loan covers the sponsor’s acquisition of eight Motel 6 and four Studio 6 properties built between 1969 and 2008 in Orlando, Fort Lauderdale, Cocoa Beach, Dania Beach, Destin, Cutler Bay, Jacksonville and West Palm Beach, FL. The sponsor also acquired 14 economy extended-stay hotels located in Georgia and the Florida Panhandle, eight of which are operating as Studio 6 properties and will undergo brand-mandated renovations. Five of the properties will remain unbranded due to their small size, but also undergo major renovations. In Georgia, the hotels are in Atlanta, Austell, Carrollton, Cartersville, Columbus, Dekalb, Douglasville, East Point, Fairburn, Forest Park and Louisville. Two of the hotels are in Pensacola, FL. The 15 additional properties held as collateral are in Florida, Massachusetts, North Carolina, South Carolina and Virginia.