Eagle Hospitality Seeks to Sell Its 13 Hotels
PURCHASE, N.Y.—Eagle Hospitality Properties Trust ("Eagle Hospitality") announced today that it has reached an agreement with its secured lender that allows the Company to sell its 13 premium-branded hotels and repay its secured debt at a discount. Eagle Hospitality will be considering offers from investors interested in some or all of the hotels in the portfolio. READER COMMENTS
"The Embassy Suites, Hilton, Marriott and Hyatt-branded properties are experiencing excellent growth and are well-positioned in their markets," said Marc Beilinson, managing director of Beilinson Advisory Group and Eagle Hospitality's chief restructuring officer, in an announcement. "Purchasers will have the flexibility to appoint their own management at 11 of the 13 properties without termination expense."
Located in Midwestern markets including Chicago, Cincinnati, Columbus and Cleveland, and in growth markets such as Boston and Denver, the properties have been well-maintained with $77 million in capital expenditures since 2008. For the trailing 12 months ended July 2012, the hotels as a portfolio achieved: An average daily rate of $126; An average occupancy rate of 75.4%; Growth of revenue per available room (RevPAR) of 7.1%; and EBITDA growth of 15.9%.
"This is a tremendous opportunity for investors to acquire high-performing assets amid a historically low-cost market for borrowing," Beilinson said. "The hotels are poised to continue growing revenue and earnings and to exploit certain revenue enhancement and expense savings opportunities."
Eagle Hospitality's Properties:
Cincinnati Landmark Marriott (321 rooms)
Chicago Marriott Southwest at Burr Ridge (184 rooms)
Hyatt Regency Rochester (336 rooms)
Embassy Suites Hotel Columbus/Dublin (284 rooms)
Embassy Suites Hotel Cleveland/Rockside (271 rooms)
Embassy Suites Hotel Boston at Logan International Airport (273 rooms)
Embassy Suites Hotel Denver-International Airport (174 rooms)
Embassy Suites Hotel Phoenix-Scottsdale (270 rooms)
Embassy Suites Hotel Tampa-Airport/Westshore (243 rooms)
Embassy Suites Hotel & Casino San Juan (299 rooms)
Embassy Suites Hotel Cincinnati-RiverCenter (226 rooms)
Hilton Glendale (351 rooms)
Hilton Cincinnati Airport (306 rooms)