5 U.S. hotels change hands

TJM Properties sold the closed Atlantic Club Casino Hotel in Atlantic City, N.J., to the New York City-based investment and construction firm Colosseo Atlantic City. Photo credit: TJM Properties

RLH Corp. entered into a nonbinding sales agreement for the Red Lion Hotel Anaheim (Calif.) Resort for $23 million in gross proceeds. The sale, a part of the company’s ongoing hotel asset-disposition program, came weeks after RLH Corp. revealed it had entered nonbinding sales agreements for three other hotels in Atlanta, Washington, D.C., and Salt Lake City. The transaction is expected to close by year-end. RLH Corp. plans to use net proceeds from the sale to repay corporate-level debt and fund franchise growth opportunities. A transitionary franchise agreement is being negotiated for the hotel. The Red Lion Hotel Anaheim Resort features 308 guestrooms, onsite dining and an outdoor pool.

Florida real estate firm and hotel management company TJM Properties sold the closed Atlantic Club Casino Hotel in Atlantic City, N.J., to the New York City-based investment and construction firm Colosseo Atlantic City. TJM Properties had bought the 800-room hotel from Caesars Entertainment after it closed in 2014. TJM owns one other Atlantic City hotel—the 500-room The Claridge Hotel—as well as properties in the Northeast and Florida.

Pebblebrook Hotel Trust sold the 82-room Hotel Madera in Washington, D.C., for $23.3 million. The sale represented a 14.3 times earnings before interest, taxes, depreciation and amortization multiple and a 5.7 percent net operating income capitalization rate based on the property’s 2018 operating performance. Including this sale, the company has completed $1.3 billion of asset sales as part of its strategic disposition plan, including $449 million of asset sales this year. The company plans to reach $600 million by year-end. The company owns 57 hotels, totaling approximately 14,100 guestrooms.

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Virginia-based Medalist Diversified REIT acquired the 148-room Best Western Plus University Inn & Conference Center in Clemson, S.C., for $9.75 million. The hotel is located less than a mile from Clemson University, a school with a student enrollment of 24,500 and more than 5,000 faculty members. Medalist Diversified REIT specializes in acquiring, owning and managing value-add commercial real estate in the Southeast.

In Florida, Lafrance Hospitality of Westport, Mass., bought the 126-room Hilton Garden Inn Fort Myers from Excel Group. Hunter Hotel Advisers, who led the transaction, noted that the trend of Northern hotel owners diversifying their portfolios with Florida properties seems to be growing.

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