NEW YORK—Blackstone Group was reportedly interested in buying Homestead Studio Suites from Security Capital, but according to a report in Commercial Mortgage News, Blackstone’s bid has faltered. Starwood Hotels and Resorts has now become the frontrunner for the portfolio, according to industry sources. Blackstone had lined up a $600 million mortgage commitment from Bear Stearns & Co., said the newspaper report. But now lenders are turning their attention to Starwood, which has received proposals from J.P. Morgan Chase, Deutsche Bank and other securitization programs. Chicago-based Security Capital has been shopping an under performing portfolio of Homestead Studio Suites hotels via Salomon Smith Barney, sources said. The 112 properties, which are located in 37 markets, encompass about 17,000 rooms. They are expected to fetch $800 million to $900 million. According to the newspaper report, Blackstone had emerged as the frontrunner to buy the portfolio and was in final talks with Security Capital two weeks ago. However, the talks fell through for reasons that are not known. Last Monday, Security Capital turned to Starwood and began negotiations to hammer out a final agreement. If Starwood’s bid collapses, however, Blackstone would be in a position to re-enter the picture, said the paper. The Homestead Suites chain was formed in 1994 by an affiliate of Security Capital, which owns 13 real estate businesses. In 1996, the hotels were spun off into an Atlanta unit called Homestead Village.
Previous ArticleSWAN Inks Management Contract, About To Close Second Deal
Next Article Radisson SAS Opens 5th Hotel In Poland