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RLHC to Enter Joint Venture to Acquire The Quincy in D.C.

RLHC to Enter Joint Venture to Acquire The Quincy in D.C.

SPOKANE, Wash.—A subsidiary of RLHC (Red Lion Hotels Corporation) will enter into a joint venture with an affiliate of Shelbourne Capital to acquire The Quincy hotel in downtown Washington, D.C., for an undisclosed amount. A definitive agreement has been signed and the transaction is expected to close on the 99-room boutique hotel by mid-October, subject to customary closing conditions. RLHC will enter into a long term agreement to manage the property as a Hotel RL. “This transaction gives RLHC the opportunity to place our new Hotel RL brand squarely in the center of the Dupont Circle Neighborhood of Washington, D.C., just a few blocks from The White House,” said RLHC Senior Vice President of Corporate Development Angela Landgraf. “With this announcement following the opening of the first Hotel RL in Baltimore’s Inner Harbor on August first, the Hotel RL brand is staking its claim in the top U.S. markets. Hotel RL is generating strong interest from investors, the hotel industry, and most importantly our guests.” RLHC will use a portion of its cash on the balance sheet to purchase its equity stake in the joint venture. This capital, combined with other investor equity and anticipated debt financing, will be used ...

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Carey Watermark Investors Announces Ritz-Carlton Acquisition

Carey Watermark Investors Announces Ritz-Carlton Acquisition

NEW YORK—Carey Watermark Investors Incorporated (CWI 1) announced that it has acquired a majority interest in The Ritz-Carlton, Fort Lauderdale property in a joint venture with RCFL Holdco, LLC, an affiliate of Gencom, one of North America’s leading hospitality and luxury hospitality-related residential real estate investment and development firms. This transaction marks Carey Watermark Investors’ third joint venture purchase with the Gencom family of companies, following The Ritz-Carlton, Philadelphia and The Ritz-Carlton, Key Biscayne, Miami, acquisitions. The three transactions represent a total investment of more than $500 million. The property is located on Fort Lauderdale Beach, adjacent to some of the area’s high-end residential real estate. It is within proximity to leisure demand generators, including golf courses, shopping malls, museums, nightclubs, and marinas. The Ritz-Carlton, Fort Lauderdale is near Fort Lauderdale-Hollywood International Airport and Port Everglades, and within a 30-minute drive to Miami International Airport. From 2009 to 2014, the Fort Lauderdale lodging market RevPAR experienced a compound annual growth rate of 7.6 percent and is projected to increase over the next two years, according to PKF Hospitality Research. An extensive renovation of the hotel is planned for 2015, including a complete renovation and re-conceptualization of the three-meal restaurant, renovation, ...

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Ashford Hospitality Trust Acquires Minneapolis Hotels

Ashford Hospitality Trust Acquires Minneapolis Hotels

Ashford Hospitality Trust, Inc. announced that it has signed a definitive agreement to acquire two Minneapolis hotels, the 229-room W Minneapolis Hotel—The Foshay, and the 60-room Le Meridien Chambers Minneapolis hotel, for total consideration of $101 million in cash. As part of the transaction, the company will assume approximately $56.0 million of mortgage debt on the W Minneapolis Hotel. The assumed debt matures in May 2023 and carries a fixed rate of 5.46 percent. Post-closing, both properties will continue to be managed by Starwood Hotels. The purchase price represents a trailing 12-month cap rate of 6.0 percent on net operating income and a trailing 14.4x EBITDA multiple. On a forward 12-month basis, the purchase price represents an estimated cap rate of 7.0 percent on net operating income and an estimated 12.5x EBITDA multiple. On a trailing 12-month basis, the Le Meridien Chambers Minneapolis achieved RevPAR of $171.00, with occupancy of 84.9 percent and Average Daily Rate of $201.45, and the W Minneapolis Hotel achieved RevPAR of $166.84, with occupancy of 82.0 percent and Average Daily Rate of $203.40. “We are excited about this transaction as it represents a remarkable opportunity to acquire two well-located hotels in the Minneapolis market, which ...

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SBE Forms Real Estate Development Business

SBE Forms Real Estate Development Business

LOS ANGELES—SBE, the Los Angeles-based hospitality company that develops, manages, and operates hotels, restaurants, and nightclubs, announced the formation of an international real estate development subsidiary, Dakota Development. The Dakota team, which has developed more than 80 projects for SBE, is now offering its planning, design, development, and construction-management services to developers, lenders, and other financial institutions. Dakota is also forming a new single-family residential division that will purchase, build, and reposition high-end estates. This builds on the experience Dakota has in adding in condominiums and villas at several of SBE’s hotel and resort properties. “Making Dakota a separate platform allows us to unlock the inherent value in one of the most dynamic and sought-after divisions of our company,” said Sam Nazarian, SBE’s founder, chairman, and chief executive. “Dakota’s services are in high demand and this gives Dakota the opportunity to expand its operations beyond SBE.” Dakota has developed a range of design-forward properties, including SLS properties in Las Vegas, Beverly Hills, and South Beach; Redbury Hotels in Hollywood and South Beach, Katsuya by S+tarck and Cleo restaurants, and Hyde nightlife venues. Current projects include SLS Hotels in Seattle, New York, Philadelphia, Baha Mar, Miami, Washington, D.C., Cancun, and Cabo ...

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Starwood Sells Phoenician to Host Hotels & Resorts

Starwood Sells Phoenician to Host Hotels & Resorts

STAMFORD, Conn.—Starwood Hotels & Resorts Worldwide, Inc. announced that it has sold The Phoenician, A Luxury Collection Resort in Scottsdale, Ariz. to Host Hotels & Resorts for $400 million. Under Host’s ownership, The Phoenician will undergo a complete renovation. Starwood will continue to operate the hotel under The Luxury Collection brand flag. Adam Aron, chief executive officer of Starwood on an interim basis, said, “This transaction, on the heels of our sale just a few weeks ago of The Gritti Palace in Venice, marks another important step towards Starwood achieving our stated goal of completing $800 million in asset sales by the end of 2015. The Phoenician is a one-of-a-kind asset and will remain an extraordinary resort in The Luxury Collection. The vision of Host Hotels & Resorts to further enhance The Phoenician is one of many cornerstones in Starwood’s imaginative plans for The Luxury Collection brand,” he said. “We are thrilled to expand our partnership with Host Hotels & Resorts and look forward to working together to ensure the continued success of this spectacular resort,” said Simon Turner, president of global development for Starwood. “Starwood continues its focus on selling its owned properties to the right long-term partners, in ...

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