A portfolio of U.S. hotels owned by Singapore-based REIT Eagle Hospitality Trust have have secured successful bids as part of ongoing bankruptcy proceedings,.
According to Asian real estate website mingtiandi.com, entities that owned 15 EHT hotels struck a deal with stalking-horse bidder Madison Phoenix—an affiliate of distressed-debt specialist Monarch Alternative Capital—which agreed to buy some of the hotels for an aggregate consideration of $470 million. This effectively set the “floor price” for the portfolio of properties included in the Chapter 11 proceedings, and was subject to higher or better competing bids that could be submitted by other interested parties during the second bid round.
The stalking-horse bid covered the Holiday Inn Resort Orlando Suites Waterpark; the Holiday Inn Denver East Stapleton; the Renaissance Denver Stapleton Hotel; the Holiday Inn Hotel & Suites Anaheim (Calif.) Disneyland; the Holiday Inn & Suites San Mateo (Calif.); the Sheraton Pasadena (Calif.) Hotel; the Crowne Plaza Danbury (Conn.); the Westin Sacramento (Calif.); and the Embassy Suites Palm Desert (Calif.).
Before the auction, the Madison Phoenix determined that it would not purchase the Queen Mary Long Beach, a retired ocean liner now moored off the coast of Los Angeles.
On the Auction Block
Five of the REIT’s 15 U.S. hotels that were included in its Chapter 11 bankruptcy received qualified bids in a second bidding round, resulting in a $24.8 million net increase in the aggregate consideration for the auctioned properties. Solid Rock Ventures bid $9.2 million for the Sheraton Denver Tech Center. BPEHT bid $41.1 million for the Four Points San Jose (Calif.) Airport and $33.8 million for the Double Tree Salt Lake City Airport. FullG Capital successfully bid $38.2 million for the Hilton Atlanta North, and Madison Phoenix itself bid $33.1 million for the Embassy Suites Anaheim North.
Following the auction, the aggregate purchase price payable by the respective successful bidders for the 14 Chapter 11 properties (excluding the Queen Mary Long Beach) is $481.9 million.
Eagle Hospitality Trust intends to seek approval, at the sale hearing, of the successful bids and back-up bids for the purchase of the respective auctioned properties and the purchase by Madison Phoenix of the non-auctioned properties. The sale hearing is scheduled for May 28. Upon the approval of the sale of the properties by the United States Bankruptcy Court at the hearing and the completion of the sale, the properties remaining in EHT’s portfolio will be the Queen Mary Long Beach; the Delta Woodbridge in Iselin, N.J.; Hilton Houston Galleria Area; and Crowne Plaza Dallas Near Galleria-Addison. The REIT trustee will continue to explore all available options to EHT in respect of these properties.