NATIONAL REPORT—Hotel Business is tracking transactions in the industry. Sonnenblick-Eichner Company, Caesars Entertainment Corporation and Driftwood Acquisitions and Development recently made deals. Here are the details:
Sonnenblick-Eichner Co. Arranges $21 M Loan to Refi Palihotel Seattle
Sonnenblick-Eichner Company has arranged $21 million of non-recourse first mortgage leasehold financing, on behalf of a partnership between Los Angeles-based Lighthouse Investments LLC and KCB Management, for the 96-room Palihotel Seattle, which is operated by Palisociety.
Caesars Entertainment Agrees to Sell Interest in Emerald Resort & Casino
Caesars Entertainment has agreed to sell its South African property Emerald Resort & Casino to Peermont Hotels, Casinos and Resorts, a Johannesburg-based hospitality and entertainment company, for total proceeds of $49 million, which implies a 7.9x multiple on 2018 EBITDA of $6.2 million. Caesars owns 70% of this property while the remaining 30% is owned by local minority partners. Total cash proceeds to Caesars for its 70% ownership and other adjustments total $39 million.
Caesars Entertainment will continue to operate the property until the transaction closes, which is expected to be in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.
Driftwood Acquisitions & Development Launches First Opportunity Zone Fund with Seeded Deals
Driftwood has launched its initial qualified opportunity zone fund with a target raise of $50 million. The firm has already secured two opportunity zone investments for Driftwood QOF: a joint venture for the development of the 218-key, dual-branded hotel Home 2/Tru by Hilton in Ft. Lauderdale, FL, and the redevelopment of a 10-story office building in Wilmington, DE, into a 136-room IHG-branded urban hotel. In addition to investing in the Ft. Lauderdale and Wilmington deals, the Driftwood QOF intends to leverage its acquisition pipeline to source high-yield development and redevelopment projects in opportunity zones across the U.S.