New York-based investment manager Square Mile Capital has acquired a four-hotel portfolio in the U.S. from Blackstone Group, according to a report from Commercial Observer.
The four hotels, which have a total of 960 guestrooms, are part of Hilton's Embassy Suites brand. Three of the hotels are near the international airports in Boston, Mass.; Denver, Colo.; and Tampa, Fla. while the fourth hotel is next to a golf course in Phoenix, Ariz. near Paradise Valley.
Denver County property records stated that Denver International Airport’s Embassy Suites sold for $49.5 million. The other sales prices were undisclosed.
Texas-based property management firm Aimbridge Hospitality manages the hotels. ACORE Capital told Commercial Observer that the properties, which were built between 1984 and 2003, underwent renovations within the last two years.
"These four properties are in attractive, high-barrier-to-entry locations and, with targeted capital renovations planned, they are poised for future performance growth. We will implement our hands-on asset managing approach, and we look forward to maximizing the potential of these institutional-quality, geographically diversified assets," Nolan Hecht, an executive at Square Mile, told Commercial Observer.
Square Mile secured $178.5 million in funding from ACORE Capital to acquire the portfolio. The investment manager divided the debt into a first-lien mortgage and mezzanine financing with plans to repay the loan within five years.
Aimbridge has a portfolio of 10 additional Embassy Suites in cities across the U.S., including Chicago and Lombard, Ill.; Houston and College Station, Tx; Bloomington, Minn.; New Orleans and Baton Rouge, La.; Brookfield, Wis.; Jacksonville, Fla.; and Linthicum, Md. The hotel manager also began operating Hilton’s new Canopy in Dallas,Tx. in July.
Square Mile was on the opposite end of a lending deal in March. The group along with J.P. Morgan Chase granted Kentucky-based hotel owner and operator Columbia Sussex $75 million to acquire the 466-room Boston Marriott Quincy in Quincy, Mass.