Transactions

Hotel & Motel Management, August, 2004 by Jeff Higley

Acquisitions

American Property Management Corp. purchased the 110-room Hilton Garden Inn Nashville from ShoLodge for $6.7 million. Neptune Hospitality Advisors of San Diego arranged the first mortgage financing.

AmeriStar Casinos purchased the Mountain High Casino in Black Hawk, Colo., for $115 million and its $75-million investment plans include a 300-room hotel. The casino had been in bankruptcy proceedings.

Dallas-based Ashford Hospitality Trust completed the acquisition of the 187-room Sheraton Bucks County Hotel in suburban Philadelphia from OPEB I for $16.7 million in cash. Ashford will invest $5.7 million to upgrade the hotel, which will be managed by Remington Lodging & Hospitality. Molinaro Koger closed the sale on behalf of OPEB I. In a separate deal, Ashford signed a definitive agreement to acquire a four-property, 365-room portfolio of hotels from Day Hospitality Group for $25.9 million in cash plus a contingent component of consideration to be paid, if earned, no later than April 30, 2005. The properties are the 92-room Hampton Inn-Mall of Georgia in Atlanta; the 96-suite SpringHill Suites by Marriott-Mall of Georgia; a 90-suite SpringHill Suites by Marriott in Kennesaw, Ga.; and an 87-room Fairfield Inn & Suites in Kennesaw. Day Hospitality will operate the four properties under incentive-laden, three-year management agreements.

Affiliates of Blackstone Real Estate Advisors of New York signed a binding agreement with Outrigger Enterprises to acquire the Waikoloa Beach Marriott and Wailea Marriott resorts in Hawaii for an undisclosed sum.

Donald J. Trump and Hollinger International entered into an agreement in which Trump will purchase the full interest in the real-estate joint venture that is developing Trump International Hotel & Tower in Chicago for $73 million. The hotel and tower will be built on the current site of the headquarters of the Chicago Sun-Times, which Hollinger owns.

Daytona Beach, Fla.-based Elite Hospitality acquired a 128-room Hampton Inn in Jacksonville, Fla., from an undisclosed seller. Terms were not disclosed.

Gulfport, Miss.-based Encore Enterprises increased its portfolio to 18 hotels with the acquisition of the 80-room Ramada Ltd. hotel in Grapevine, Texas, from an undisclosed seller. The company plans to reflag the hotel as a Fairfield Inn & Suites.

Norwalk, Conn.-based HEI Hospitality acquired the 410-room Sheraton Music City hotel in Nashville from McGavock Associates for an undisclosed price. It is the first hotel acquired by HEI Hospitality Fund, a newly formed $275-million private equity fund that intends to acquire up to about $800 million in hotel assets during the next two to three years. Merritt Hospitality, a wholly owned subsidiary of HEI, will operate the hotel and oversee a $1.5-million renovation.

Fairmont Hotels & Resorts agreed to sell The Fairmont Kea Lani Maui in Hawaii to Host Marriott Corp. for $355 million--about $789,000 per room. The resort will retain its name and be managed by Fairmont under the existing long-term management contract. The transaction is expected to close in August.

Innkeepers Trust USA, in association with Dimension Development Co., acquired the 216-room Four Points by Sheraton in Fort Walton Beach, Fla., from an undisclosed seller for $30 million. Snyder Nationwide Real Estate represented the seller in the all-cash transaction. In a separate transaction, Innkeepers Trust USA completed the acquisition of the 182-room Clarion Hotel in Louisville, Ky., for $6.4 million. The property, which was in foreclosure, will be converted to a Hampton Inn following a $4.5-million renovation program.

An investment group led by Makar Properties acquired the 132-room Ritz Plaza Hotel in Miami Beach, Fla., from RPH Hotel Associates LLC for an undisclosed sum. Kimpton Hotel & Restaurant Group will provide the brand and management to the hotel following a renovation and expansion. Molinaro Koger advised the seller in the deal.

MeriStar Hospitality Corp. completed the acquisition of the Marriott Irvine (Calif.) from CIGNA Corp. for $92.5 million. The 484-room hotel will be operated by Marriott International under a long-term contract. The company financed a portion of the acquisition with a $55.5-million fixed-rate mortgage provided by Connecticut General Life Insurance Co. The seven-year term loan carries an interest rate of 5.69 percent. The Plasencia Group advised CIGNA in the sale.

MJS Properties bought the 162-room Ramada Inn in Victorville, Calif., from Hotel Victorville LLC for $6.5 million. A million-dollar renovation is planned. Amber Hotel Co. brokered the transaction.

Newport Hospitality Group acquired the 106-room Hampton Inn Savannah North in Georgia from Kessler Hospitality Group for about $8 million. HREC Investment Advisors arranged the sale of behalf of The Kessler Collection.

San Diego-based Pacifica Cos. acquired the 355-room San Jose (Calif.) Wyndham from MeriStar Hospitality for an undisclosed sum. The Plasencia Group advised MeriStar in the deal.