Companies are closing on hotel sales in cities across the country. Here’s a look:
Commonwealth Hotels acquires two Hyatt hotels
Commonwealth Hotels has acquired the Hyatt House Chicago/Naperville/Warrenville and the Hyatt Place Chicago/Naperville/Warrenville. The neighboring hotels offer guests varying amenities 30 miles west of Chicago.
Both hotels include meeting room spaces, indoor pools, fitness centers, business centers and on-property bar/restaurants. They are also pet-friendly. As members of the Hyatt brand and managed by Commonwealth Hotels, the properties are participators in the brands’ Safety First, Wellbeing Always campaign. They are fully committed to keeping the respective hotels clean while maintaining proper distance from guests whenever possible.
Pebblebrook closes on sale of Kimpton Sir Francis Drake Hotel
Pebblebrook Hotel Trust has closed on the sale of the 416-room Kimpton Sir Francis Drake Hotel in San Francisco to a third party on April 1, generating $157.6 million of net proceeds after customary closing costs.
Based on the hotel’s operating performance for 2019, the $157.6 million of net proceeds reflects an 11.8x EBITDA multiple and a 7.2% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues).
Pebblebrook purchased Sir Francis Drake Hotel for $90 million in 2010 as its second hotel. The property was a successful investment for the company, delivering a significant gain on sale and an 11-year compounded internal rate of return of over 12% a year. Proceeds from the sale of Sir Francis Drake Hotel will be utilized for general business purposes, which may include reducing the company’s outstanding debt.
MCR acquires property in Charlotte, NC
MCR has acquired the new-build, 124-suite SpringHill Suites by Marriott Charlotte-Southwest in Charlotte, NC. Close to Charlotte Douglas International Airport and downtown Charlotte, the all-suite hotel off Interstate 77 is located in the popular Steele Creek suburb.
The hotel has 124 pet-friendly, non-smoking suites with mini-refrigerators, coffeemakers and microwaves; free daily breakfast; a 24-hour fitness center; an outdoor pool; free WiFi; a 24-hour business center; a 24-hour convenience store; on-site laundry; complimentary parking; and 430 sq. ft. of event space accommodating up to 30 people.
Newport Hospitality acquires dual-brand in Georgia
Newport Hospitality Group has recently acquired the newly opened dual-branded hotel Hilton Garden Inn and Home2 Suites in The Golden Isles area in Brunswick, GA. The 84-room Hilton Garden Inn with 4500 sq. ft. of meeting space and the 91-room Home2 Suites by Hilton opened on Nov. 20, 2020. The dual-branded hotel is located just off I-95 and is close to Brunswick Golden Isles Airport, College of Coastal Georgia and historic downtown Brunswick.
The hotels have pet-friendly accommodations; outdoor gathering and grilling areas; guest laundry; a restaurant and lounge; a heated indoor pool; and a fitness center.