NATIONAL REPORT—Hotel Business has been following transactions in the industry. Here’s what we found:
Chatham Lodging Trust Sells Homewood Suites by Hilton Carlsbad, CA
Chatham Lodging Trust has sold the 145-suite Homewood Suites by Hilton Carlsbad, CA for $33 million. The REIT sold the hotel at an approximate 6.5% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on trailing 12 months performance. In connection with the sale, the buyer assumed a $20 million CMBS loan that carried an interest rate of 4.3%. Remaining proceeds of $13 million will be utilized to reduce borrowings on Chatham’s unsecured credit facility.
Hall Structured Finance Closes $17.3M Loan
Hall Structured Finance (HSF) has closed a new first lien loan totaling $17.3 million to finance the construction of a 126-room Cambria Suites in Charleston, SC. The project will be sponsored by a joint venture partnership between RREAF Holdings and Upland Lodging. The project broke ground in October and is slated to open in early 2019.
Boyd Gaming to Acquire Valley Forge Casino Resort
Boyd Gaming Corporation has entered into a definitive agreement with Valley Forge Convention Center Partners to acquire Valley Forge Casino Resort in King of Prussia, PA for $280.5 million.