This Week’s Hotel Sale and Financing Announcements

HREC Investment Advisors has arranged the sale of the 99-room TownePlace Suites Denver Southwest, located in Littleton, Colo., and the 94-room TownePlace Suites Garden of the Gods, located in Colorado Springs, Colo. HREC represented the seller, Scio Hospitality, during the transaction. The sale was negotiated by Jeffrey Duni, senior vice president in the Denver office. The buyer was Sun Hill Properties Inc.

PMZ Realty Capital LLC, a boutique real estate investment banking firm, has secured a $35 million, three-hotel portfolio refinancing for Middletown Management. The three properties refinanced are all located in Ohio and include the 118-room Springhill Suites by Marriott in Beavercreek, the 130-room Holiday Inn North Cincinnati in West Chester, and a 111-room Holiday Inn Express & Suites in Dayton.

Wason Associates Hospitality Real Estate Brokerage Group recently announced that it has negotiated the sale of the Fox Ridge Resort in North Conway, N.H. The sale was completed in January 2019 between the seller, FRNC LLC, and the buyer, CHHAVI Hospitality LLC, which plans to invest $3 million toward a capital improvement plan. The property will be managed by Jamsan Hotel Management Company of Lexington, Mass. In addition to the 30 acres with views of the White Mountains, this 138-room property has an indoor and outdoor swimming pool, large dining area, and game room.

Ashford Hospitality Trust, Inc. has completed the acquisition of the 178-room Hilton Santa Cruz/Scotts Valley in Santa Cruz, Calif., for $50 million. The 178-room and 21-suite property is the only full-service, Hilton-branded asset in the Santa Cruz market. Located near Silicon Valley, the hotel benefits from the business transient and group demand generated by the region’s economic expansion. In addition to the change in ownership, Remington Hotels has taken over the management of Hilton Santa Cruz/Scotts Valley.

KH Funding CA, LLC, an affiliate of Knighthead Funding, LLC, a newly licensed lender in California, has originated its first three loans in the state totaling $13.85 million. The financings were secured by development sites for two multifamily projects in West Los Angeles and a planned boutique hotel in Orange County. Orange County-based developer Berk Development received a $5.5 million, first mortgage loan from Knighthead to fund predevelopment costs for The Wave at Dana Point, a 57-room, four-star boutique hotel on Pacific Coast Highway in Dana Point.

The owners of the historic Spruce Point Inn in Boothbay Harbor, Maine, have concluded the sale of the property to Stonehouse Capital. Stonehouse Capital has engaged BENCHMARK to operate Spruce Point Inn as part of their Gemstone Collection. “Our plan is to protect and celebrate the Inn’s history and charm, while continuing to make thoughtful improvements that enhance our guests’ experience,” said Stonehouse Capital CEO Jeff Broaden.