ACQUISITIONS
TWELVE MIDTOWN & DOWNTOWN, AUTOGRAPH COLLECTION
Atlanta, Georgia
$52 Million
101 Keys & 102 Keys
Two luxury boutique hotels along with over 8,000 square feet of ground floor retail that were converted to Marriott's Autograph Collection. An adjacent 1-acre development parcel at the downtown location has over 1 million square feet of FAR that is in planning for residential and hotel uses.
HAMPTON INN BUCKHEAD
Atlanta, Georgia
$15.2 Million
153 Keys
Formerly owned as REO by GE, this hotel underwent a $5 million Forever Young PIP to become a strong performing asset. The hotel sits on 1.33 acres in a prime retail corridor of Atlanta's affluent Buckhead submarket and will eventually be redeveloped.
HOLIDAY INN EXPRESS AUGUSTA
Augusta, Georgia
$10.3 Million
117 Keys
A local developer was given a condemned building that enabled a profitable sale soon after re-opening as a Holiday Inn Express. This extremely low basis combined with a transformation of downtown Augusta has generated consistently high cash on cash returns.
MOTEL 6 ATLANTA AIRPORT
Atlanta, Georgia
$6.5 Million
191 Keys
A New York-based company had completely mismanaged this property. Located in the best part of the airport submarket near Delta's headquarters, a comprehensive PIP and conversion to Motel 6 have helped this hotel achieve over $3.5 million of annual revenue
HOLIDAY INN EXPRESS ATLANTA AIRPORT
Atlanta, Georgia
$13.5 Million
223 Keys
An investor from California acquired this property from Red Lion corporate and unsuccessfully converted it to a Clarion. Located directly adjacent the Motel 6 on Virginia Avenue, the hotel underwent an $8 million PIP to convert to Holiday Inn Express.
FLORIDA G6 PORTFOLIO
Multiple Cities, Florida
$125 Million
1,642 Keys
Having already made 5 separate purchases from Blackstone in South Carolina (3), Georgia (3), Massachusetts (7), Florida (5) and Texas (6), the confidence to acquire this 12-hotel portfolio in Florida stemmed from the ability to quickly increase revenue and decrease expenses.
EFFICIENCY LODGE PORTFOLIO
Multiple Cities, Georgia
$40 Million
1,446 Keys
An off-market portfolio of 12 independent hotels in metro Atlanta and 2 in the Florida panhandle. 7 of the hotels are being converted to Studio 6. The portfolio immediately benefited from professional management, which has driven substantial bottom-line improvement.
DEVELOPMENTS
HAMPTON INN & HOME2 SUITES
Austin, Texas
$71.5 Million
276 Keys
Scheduled to open in August 2023, this dual-branded property is located in Austin's most desirable submarket, the Eastside. A seasoned development team is delivering an institutional quality asset that is exceptionally non-prototype, including a detached 195-space garage and 10,000 square foot courtyard with pool and cabañas. The hotel will benefit from 5 million square feet of office space in a 1-mile radius that is currently served by only 2 small boutique properties.
MARRIOTT AC
Austin, Texas
$37 Million
132 Keys
Scheduled to start construction in 2024, this hotel is located in the heart of Austin's Eastside, 2 blocks from Plaza Saltillo. The site required a partial height variance, circumnavigating a heritage tree, lot line to lot line construction and 2 levels of subterranean parking.
HOME2 SUITES BLUFFTON
Bluffton, South Carolina
$17 Million
107 Keys
Located down the road from a successful Hampton Inn, this hotel is 19 miles from Hilton Head and directly adjacent Del Webb's Sun City. The Bluffton/Okatie area has experienced explosive growth, and Hampton Inn and Home2 Suites are proven to be complementary brands.
FINANCINGS
G6 CMBS PORTFOLIO
Georgia & South Carolina
$3 Million ($16 Million Senior)
594 Keys
This 4-hotel portfolio was the first ever G6 collateral to be financed with a 10-year fixed rate conduit loan. This was facilitated by the hotels' multi-year history of stabilized cash flow. A $3 million mezzanine loan provided the cash out proceeds.
RENDEZVOUS
Tucson, Arizona
$8.5 Million ($30 Million Senior)
100 Units
A mid-size debt fund was attempting to refinance an unstabilized luxury apartment project at 95% of the developer's basis. The $30 million 3-year floating rate loan was originated with an $8.5 million mezzanine loan to achieve the required proceeds.
G6 TEXAS PORTFOLIO
Austin & San Antonio, Texas
$10 Million ($29.9 Million Senior)
923 Keys
This is extremely coveted portfolio of 6 hotels was being purchased from Blackstone with a low leverage recourse bank loan. In order to prevent dilution, $10 million of preferred equity was structured with security acceptable to the bank and amortization from cash flow.
HOLIDAY INN EXPRESS ATLANTA AIRPORT
Atlanta, Georgia
$5 Million ($15 Million Senior)
223 Keys
Despite significant expected profit from converting a failed hotel to a Holiday Inn Express, this acquisition was challenging to finance due to the large PIP and poor cash flow. A well-priced senior from a debt fund created enough coverage to support a $5 million mezzanine loan.
PHILADELPHIA MARRIOTT OLD CITY
Philadelphia, Pennsylvania
$20 Million ($75 Million Senior)
364 Keys
This hotel completed a $31 million renovation in 2019. At that time, a $95 million loan from a mortgage REIT recapped the sponsor's basis of $125 million. Facing a maturity 3 years later, the existing senior lender was able to originate a new $75 million loan with a paydown of $20 million provided by the mezzanine loan.