Transactions

Hotel & Motel Management, Feb 7, 2005 by Jeff Higley

Financing

Dallas-based Ashford Hospitality Trust closed on the sale of a $10-million first mortgage secured by The Hotel Teatro in Denver to CW Capital. The loan is interest only at a rate of 280 basis points over London interbank-offered rates with a maturity date of October 2006. Ashford retained a $5-million mezzanine loan at an interest rate of 1,135 basis points over LIBOR.

Collateral Mortgage Capital of Waukesha, Wis., arranged the first mortgage acquisition and expansion construction loan of Country Inn Hotel & Waterpark in Milwaukee. The $16.3-million loan was funded through First Bank of Illinois and features a three-year term with two years interest only and the remaining year amortized on a 20-year schedule.

New York-based Howard D. Baker & Co. arranged first mortgage financing for $7 million for the Holiday Inn Express in Stony Brook, N.Y. The 143-room property received a loan for a 10-year term with American Enterprise Life Insurance Co. through American Express Financial Corp.

Neptune Hospitality Advisors of San Diego arranged first mortgage financing for American Property Management Corp. for the purchase of the 295-room Doubletree Hotel Tucson (Ariz.). Neptune arranged the $12.5-million, five-year fixed-rate loan at 5.54 percent, representing a spread of 195 basis points over the five-year on-the-run U.S. Treasury bill.

Ramsfield Hospitality Finance sold the senior participation interest in a $19.5-million primary mortgage to Calyon, a European corporate and investment bank. RHF has retained a $4.5-million junior stake, which is secured by the 312-room Kauai Coconut Beach Resort in Hawaii. The loan proceeds replaced the owner's existing mortgage and will finance the final stages of the property's transition into a Courtyard by Marriott oceanfront resort. The hotel's owner/operator is Presidio Hotel Group of Fairfield, Calif.

Columbus, Ohio-based RockBridge Capital closed a $10.7-million stretch first mortgage to refinance the 194-room Sheraton Park South Hotel in Richmond, Va. The sponsor is Briggs Hospitality.

Joint Ventures

Denver-based Trinity Hotel Investors, in conjunction with affiliates of Glenmont Capital Management purchased the 157-room La Posada de Santa Fe (N.M.) Resort & Spa, a RockResort from Olympus Real Estate Partners for an undisclosed sum.

Acquisitions

Buffalo Lodging Associates of Buffalo, N.Y., purchased the 232-room Radisson Hotel & Suites Fallsview in Niagara Falls, Ontario, from Panoramic Hospitality for $26.8 million. CB Richard Ellis negotiated the sale on behalf of Panoramic.

Caesars Entertainment entered into a definitive agreement to sell its Caesars Tahoe (Nev.) casino resort to an affiliate of Columbia Sussex Corp., a hotel, resort and casino operator based in Fort Mitchell, Ky., for about $45 million. The purchase agreement is subject to the right of the owner of the land on which the property is located to purchase the property on the same terms as agreed to with Columbia Sussex. The transaction is expected to close by the end of the second quarter of 2005.

Brea, Calif.-based Campbell Holdings acquired the 170-room Holiday Inn Express in Scottsdale, Ariz., from Scottsdale Lodging LLC of Spokane, Wash., for an undisclosed sum. CB Richard Ellis represented the seller.

DiamondRock Hospitality Co. purchased the 274-suite Marriott Suites Hotel in Bethesda, Md., for an undisclosed sum. Molinaro Koger closed the sale on behalf of the seller, Bethesda Hotel Associates.

An investment group affiliated with Dimension Development of Natchitoches, La., acquired the 209-room Four Points Hotel Rancho Bernardo (Calif.) from SLT Realty Partnership for an undisclosed sum. The property will be converted to a Courtyard by Marriott. Bob Kaplan of RMK Hospitality Advisors represented the buyer in the transaction.

Daytona Beach, Fla.-based Elite Hospitality acquired the 78-room Sleep Inn in Palm Coast, Fla., from an undisclosed seller for an undisclosed sum.

Memphis-based Equity Inns finalized the purchase of four hotels from McKibbon Hotel Group for $28.5 million, including the assumption of $13 million of debt. Equity was able to complete the purchase at the end of 2004 rather than the previously expected closing at the end of March 2005. The hotels are Courtyard by Marriott properties in Knoxville, Tenn., and Mobile, Ala., a Residence Inn in Macon, Ga., and a SpringHill Suites in Asheville, N.C. McKibbon will continue to manage the hotels with an incentive-based management deal.

FelCor Lodging Trust sold the 350-unit Crowne Plaza Hotel in Hartford, Conn., to an undisclosed privately held Canadian-based hotel real-estate and ownership company. Terms were not released. Optimum Hotel Brokerage of Fairfield, Conn., represented the buyer in the deal.

Gholamreza Rahmani-Azar bought the 235-room Holiday Inn Denver Northglenn from John Q. Hammons Hotels for an undisclosed sum. The property will be managed by Colorado Hospitality.

An affiliate of J. Herzog & Sons acquired the 317-room Hilton Knoxville (Tenn.) from The Hotel Group Opportunity Fund I for $21 million. The seller was represented by Hotel Realty Advisors.