Singapore-listed REIT Eagle Hospitality Trust is selling 15 of its 18 hotels in a stalking horse auction. The purchase price is $470 million but subject to higher and better offers at the auction, which will be held on May 20.
The portfolio includes the Doubletree by Hilton Salt Lake City Airport, Hilton Atlanta Northeast, Sheraton Denver Tech Center, Holiday Inn Denver East—Stapleton, Renaissance Denver Stapleton, Holiday Inn Resort Orlando Suites—Waterpark in Florida, Crowne Plaza Danbury in Connecticut and eight California properties—Westin Sacramento, Sheraton Pasadena, Embassy Suites by Hilton Anaheim North, Four Points by Sheraton San Jose Airport, Holiday Inn Hotel & Suites Anaheim, Holiday Inn Hotel & Suites San Mateo, Embassy Suites by Hilton Palm Desert and the ship-turned-hotel, Queen Mary Long Beach.
Alan Tantleff, leader of FTI Consulting’s lodging gaming and leisure industry practice, was appointed to the interim role of chief restructuring officer. In this capacity, he is assisting the REIT as it navigates the complexities of restructuring and bankruptcy.
“This is an important step for Eagle Hospitality Trust,” he said. “The company has been challenged by a number of factors including the tenants’ defaults, allegations of mismanagement and fraud, along with challenges presented by COVID. The proposed auction of the assets in a stalking-horse format allows for investors to bid on the entire portfolio, in groups or individually. I’m confident that with the support of our creditors, investors and the U.S. and Singapore bankruptcy courts, we can move quickly to implement the sale and begin the process of returning money to our stakeholders.”
A number of U.S. subsidiaries and certain Singapore subsidiaries filed bankruptcy in Delaware on Jan. 18. The parent REIT filed bankruptcy in the U.S. the following week.
The other three properties in Eagle’s portfolio—Hilton Houston Galleria, Delta Woodbridge NJ and Crowne Plaza Dallas Galleria—are being disposed separately as they are not in bankruptcy.