Alternative asset manager CaliberCos Inc. has reached an agreement with L.T.D. Hospitality Group for L.T.D. to contribute nine hotel properties to its subsidiary, Caliber Hospitality Trust, an externally advised private hospitality corporation. The transaction is expected to close by the end of Q3 2023.
Based in Virginia Beach, Va., hospitality management and development company L.T.D. was founded in 1983. All nine properties to be contributed by L.T.D. are in Virginia and include a mix of upscale to upper-upscale hotels across multiple IHG and Marriott brands. Under the terms of the agreement, L.T.D. will receive cash and/or operating partnership units in exchange for the contribution of its nine hotels.
CHT, formed in 2022, accepted its initial contribution of six hotels in Arizona in the first quarter of 2023 from funds managed by Caliber. The value of this initial portfolio was approximately $186 million as of June 30.
“We believe there are a substantial number of hotel owners across the U.S. who are looking for a compelling alternative to asset sales to access liquidity, reduce and extend debt, pay for property improvement plans, or access well-priced operating and growth capital,” Caliber CEO Chris Loeffler said in a statement. “These hoteliers are typically highly experienced professionals—second- or third-generation hotel owners—who are committed to their businesses and see the opportunity that comes with greater scale and access to permanent capital.”
“We share Caliber’s entrepreneurial approach and growth mindset and are excited to leverage their deep real estate expertise, capital resources and robust operating platform to take our business to the next level while working to create value for all of CHT’s shareholders,” said Neel Desai, managing principal of L.T.D. Hospitality Group.