NATIONAL REPORT—Hotel Business is tracking transactions. Starwood Capital, Oxygen Hospitality, Vista Capital, Calmwater Capital, Meridian Capital Group and have recently made deals.
Host Hotels & Resorts Buys 1 Hotel South Beach
Starwood Capital Group has sold the 1 Hotel South Beach in Miami Beach, FL for $610 million, which translates to $1.42 million per key. This 429-room hotel was the very first 1 Hotel, Starwood Capital’s nature-inspired lifestyle brand that focuses on sustainability both in its design and in its operations. SH Hotels & Resorts, an affiliate of Starwood Capital Group, will continue to operate and manage the property as 1 Hotel South Beach.
Oxygen Hospitality Enters Phoenix Market, Buys First Arizona Hotel
Oxygen Hospitality Group Inc. has made its foray into the Phoenix hospitality marketplace with the acquisition of the Wyndham Garden Phoenix Midtown, for an undisclosed amount. The six-story, 160-room property marks the company’s first Arizona acquisition.
Purchased by Hotel Oxygen Midtown LLC, Oxygen Hospitality plans a multimillion-dollar property renovation that will elevate it as a full-service hotel with modern conveniences ready to greet a global tourist base visiting the fifth-largest U.S. city for business, pleasure and medical services. The property will be managed by Oxygen Hospitality.
Vista Capital Closes $10M of Financing for the Candlewood Suites in Indianapolis
Vista Capital Company has recently closed $10 million of financing for the Candlewood Suites located in the medical district of downtown Indianapolis. Vista was able to negotiate non-recourse, fixed-rate financing for the property. The 10-year capital will be used, in part, to fund a comprehensive PIP that will transform the property and reinforce its leading position in the market. The financing was awarded to a European-based investment bank after a competitive bidding process that is central to Vista’s unique capital-raising strategy.
Calmwater Capital Provides $63M for Hollywood Luxury Hotel
Calmwater Capital has provided a $63-million senior secured term loan to the Relevant Group for construction of the Thompson Hotel in Hollywood, CA. Relevant Group plans to introduce the luxury boutique Thompson Hotel brand to Southern California.
This is Calmwater Capital’s second partnership with the Hollywood-based developer. Relevant Group is owner of 95 hotel properties in eight countries, including the high-profile Dream Hollywood Hotel nearby, which utilized $34.1 million from Calmwater in 2016 to add TAO Restaurant and other high-class amenities to what is now a renowned, world-class destination.
The early payoff of that debt, combined with the booming demand for lifestyle and business hospitality in Hollywood have paved the way for the latest partnership between the two Los Angeles-area companies. The proposed 188,393-sq.-ft. hotel that will contain 190 rooms and will be situated on a 0.5-acre site, less than one block north of Sunset Blvd. at 1541 Wilcox Ave. in Hollywood, CA. Upon completion, the upscale, lifestyle hotel will offer a rooftop swimming pool, a rooftop restaurant and bar, fitness center, as well as 3,000 sq. ft. of meeting space.
Meridian Arranges $16M in Financing for Hampton Inn and Suites in Birmingham, AL
Meridian Capital Group has arranged $16 million in financing to refinance the Tutwiler Hampton Inn and Suites hotel in Birmingham, AL, on behalf of a privately owned, San Diego-based real estate investment firm.
The 60-month, non-recourse loan originated by a debt fund features full-term interest-only payments and was negotiated by Meridian Senior Managing Director Seth Grossman and VP Jackie Tran, who are based in the company’s Southern California offices.