Insignia/ESG Hotel Partners Closes On Four Hotels In One Week

NEW YORK— HOTEL BUSINESS® has learned that Insignia/ESG Hotel Partners completed three deals involving a total of four hotels in the past week. This flurry of transactions activity has pushed Insignia’s transaction volume for this year to nearly $250,000,000 in value and to more than 4,000 rooms. Two hotels were sold in the first deal, for which Insignia/ESG Hotel Partners was the owner’s exclusive representative. In the transaction, CBH Hotels, an Alabama-based real estate investor, sold the 137-room Hilton Garden Inn and the 120-room Holiday Inn Express in Orange Beach, AL, to Innisfree Hotel Company in a portfolio transaction valued at approximately $15.2 million. Both properties are located on beachfront sites along the Gulf of Mexico and are approximately one mile from each other. According to Insignia/ESG, the portfolio was appealing to the buyer due to its “irreplaceable beachfront location in a regional resort destination.” The transaction represented an approximate 11% cap rate on the properties’ combined net operating income. The second deal consisted of RIC Partners, LP, a partnership headed by GF Management, Inc., a Philadelphia-based hotel investor, selling the 160-room Hilton Richmond Airport in Sandston, VA, to Pacific Concord Management Corporation in a transaction valued at approximately $6.55 million. Insignia/ESG Hotel Partners was the owner’s exclusive representative in this sale. The full-service Hilton is near Richmond International Airport, which is in the midst of a $224 million renovation and expansion. New ownership plans to renovate and convert the hotel to a Doubletree Hotel. According to Insignia/ESG, the transaction was culminated at an aggressive cap rate and subject to assumable financing through CSFB. In a third transaction representing the companys fourth hotel sale in one week, Great Lakes Companies, a Madison, WI-based hotel investor, sold the 173-room Hampton Inn & Suites in Warwick, RI, to Magna Hospitality Group. Insignia/ESG Hotel Partners advised the seller in this transaction. Opened in July 2000, the Hampton Inn & Suites is one of the newest properties at the T.F. Green International Airport. Insignia/ESG Hotel Partners told HOTEL BUSINESS® that it is close to announcing a fifth hotel transaction, which it also inked within the last week. Details on that deal are forthcoming, said the company. Shannon McMullen