Four Marriott hotels bought by Canadian REIT

American Hotel Income Properties REIT, a real estate investment trust based in Vancouver, British Columbia, Canada, acquired four Marriott-branded hotels, two in Chattanooga, Tenn.; one in Lake City, Fla.; and one in Jacksonville, Fla.

The four properties were purchased for a combined $47 million, and the REIT plans on investing in them for future upgrades. The hotels were all developed by 3H Group of Chattanooga, which sold nine hotels in the past year. 3H continues to own 13 hotels and is building a further six.

Currently, $2.8 million is set aside for brand-mandated property improvement plans at all four properties. Kevin Cleveland, GM of the 109-room Residence Inn at Hamilton Place in Chattanooga, said in a statement that all staff will remain, and the hotel will be operated by One Hospitality Group of Scottsdale, Ariz.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

"Our property is in pretty good shape, but there is going to be a renovation project in the next 12 months to keep the facility as modern and up to date as possible," Cleveland said in a statement.

Mortgage financing for the new hotels will be arranged by American Hotel Income Properties over the next 30 days, which will consist of a new commercial mortgage backed securities loan with a 10-year term and a fixed interest rate of roughly 4.5 percent. The company now has 84 hotels totaling 7,493 guestrooms.

Suggested Articles

The S.C.-based restaurant group picked hospitality veteran Larry Spelts to lead its new hotel management and consulting division.

The East Palo Alto, Calif., property features the intelligent gym and personal trainer in select guestrooms.

Infor cloud solutions now connect siloed applications and reduce manual processes for the California resort.