Barings finalizes sale of seven-hotel portfolio in U.S.

One of the hotels in the portfolio sale is in the Chicago metro area. Photo Credit: Pixabay/eli_fm.(Image: Pixabay / eli_fm)

Asset manager Barings, a MassMutual subsidiary, completed the sale of a $650-million portfolio of seven hotels in the U.S. to a Hong Kong-based investment manager on behalf of an international financial services company. 

Barings searched for new investors in the hotels, and directly arranged the sale without a broker while it secured private financing for the portfolio with three separate lenders. The new owner plans to keep Barings on as asset manager of the hotel portfolio on a long-term basis. The current hotel management companies and personnel will also continue operating the hotels as part of the transaction. 

The seven upper-upscale business hotels are in the Chicago, Boston, Washington, Seattle and Phoenix metro areas. “As an asset class, commercial real estate equity continues to attract investors seeking risk-adjusted returns, and assuming an adequate hold period, well-located quality hotel properties also represent a good portfolio diversifier,” Michael Zammitti, head of U.S. real estate equity at Barings, said in a statement. 

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.

The sale follows Barings' recent opening of the $330-million 300 South Tryon office tower and hotel in Charlotte, N.C., in late November 2017. The Spectrum Cos. developed the 638,000-square-foot tower in Uptown Charlotte, while architectural firm LS3P designed the building. The site includes an office tower with the Kimpton Tryon Hotel Park attached to it. 

Several tenants leased more than half of the development, including law firm King & Spalding, law firm Winston & Strawn, IT management consultant CapTech, real estate investor FCA Partners and The Spectrum Cos. The property is next to BB&T Ballpark and Romare Bearden Park, along with the Duke Energy, Wells Fargo and Bank of America campuses.