2020 ended with several notable hotel transactions across the southern U.S.
Texas
California-based Pacific Hospitality Group purchased the Hotel Granduca Austin in Texas. This is PHG’s third hotel in the state, following two Marriott-branded properties in Dallas. PHG will be taking over operations of the hotel immediately with plans to rebrand the property as part of the Meritage Collection of independent hotels in the summer of 2021. Hotel Granduca Austin will be the company’s sixth independent hotel in its Meritage Collection portfolio.
“As our company expands, it has always been my goal to bring Austin into our growing portfolio,” said Garrett Busch, VP of capital markets. “This area is poised for continued success with numerous companies moving to Austin, many from our home state of California. As owners and operators of many hotels, we believe we can support Austin’s booming economy with this new asset and our passion for hospitality.”
The 190,000-square-foot Hotel Granduca Austin has 194 rooms and includes 6,650 square feet of event space, a fitness center, an outdoor pool with private cabanas and spa treatment rooms.
The JLL Hotels & Hospitality team representing the seller was led by EVP John Nugent and VP Parker Sherrill. Financing was led by Director Jillian Mariutti, VP Tyler Dumon and Senior Managing Director Doug Opalka. The original developer was Interfin.
North Carolina
A 184-room Holiday Inn Resort located in Wrightsville Beach, N.C., just outside Wilmington, has changed hands for $30.25 million.
“This Holiday Inn Resort drew a tremendous amount of national interest because of its location in a high-end beach destination with an undeniably high ceiling,” said Robert S. Hunter, first VP of investments and senior director of Marcus & Millichap’s Hospitality Division. “North Carolina is consistently recognized as one of the fastest-growing states and Wrightsville Beach is a short drive from its largest population centers.”
Marcus & Millichap had the exclusive listing to market the property on behalf of the seller, a private partnership. The buyer was OTO Development.
“New hotel supply in Wrightsville Beach faces multilayered barriers to entry that are unmatched by other most seasonal leisure markets,” Hunter said. “Ultimately, the premium for those barriers and the desirability of the asset itself helped restore value to roughly 86 percent of pre-COVID market value.”
Built in 1999, the property has more than 8,000 square feet of meeting space, including a 400-person capacity ballroom, three swimming pools with two whirlpools, two restaurants, a lounge, a fitness center, a sand volleyball court and a Kid Spree Vacation Club.
Louisiana
Caesars Entertainment closed the sale of the 403-room Eldorado Resort Casino Shreveport in Louisiana to Bally's Corp. for $140 million in net proceeds, subject to a customary working capital adjustment.
“The completion of the sale of Eldorado Resort Casino Shreveport satisfies the Federal Trade Commission request to divest the asset in connection with the Caesars-Eldorado transaction which closed earlier [in 2020]," said Tom Reeg, CEO of Caesars Entertainment. "Since our acquisition of the property 15 years ago, our team members' passion and commitment have driven our success in Shreveport. We wish all of them continued success under Bally's ownership.”
“Eldorado Shreveport represents the latest step in our ongoing portfolio diversification strategy, expanding our rapidly growing geographic footprint into the attractive Shreveport/Bossier City market,” said George Papanier, president and CEO of Bally's Corp. “With the close of this transaction, we are looking forward to integrating Eldorado Shreveport into the Bally's family, and implementing our proven strategic initiatives to drive growth and revenue improvements.”
Macquarie Capital and Milbank represented Caesars Entertainment on the transaction.