Some major hotel companies have made notable acquisitions in major cities and leisure destinations in recent weeks.
Chicago
Commonwealth Hotels has acquired the Hyatt House Chicago/Naperville/Warrenville and the Hyatt Place Chicago/Naperville/Warrenville, 30 miles west of Chicago.
The Hyatt House Chicago/Naperville/Warrenville has in-suite kitchens and offers special perks for guests staying longer than 20 days. The Hyatt Place Chicago/Naperville/Warrenville is next door.
Both hotels include meeting room spaces, indoor pools, fitness centers, business centers and on-property bar/restaurants.
San Francisco
Pebblebrook Hotel Trust has closed on the sale of the 416-room Kimpton Sir Francis Drake Hotel in San Francisco to a third party, generating $157.6 million of net proceeds after customary closing costs.
Based on the hotel’s operating performance for 2019, the $157.6 million of net proceeds reflects an 11.8x earnings before interest, taxes, depreciation, and amortization multiple and a 7.2 percent net operating income capitalization rate (after an assumed annual capital reserve of 4 percent of total hotel revenues). The company purchased Sir Francis Drake Hotel for $90 million in 2010 as its second hotel. The property delivered an 11-year compounded internal rate of return of over 12 percent a year.
Proceeds from the sale of Sir Francis Drake Hotel will be utilized for general business purposes, which may include reducing the Company’s outstanding debt.
Aspen, Colo.
Meriwether Companies, a private real estate investment and development firm, has partnered with Revere Capital and Fireside Investments to acquire the Aspen Club at the base of Aspen Mountain in Aspen, Colo.
The five-acre mixed-use development site was previously operated as a fitness and tennis facility. Meriwether Companies plans to complete the revitalization of the 144,248-square-foot project, which will include hospitality, culinary, fitness, health and wellness offerings.
The site is within walking distance to downtown Aspen. Upon completion, the resort will include 20 three- and four-bedroom serviced residences. Meriwether Companies will work with city officials to move the project forward and anticipate construction will begin early summer 2021.
Naples, Fla.
MCR has acquired the 99-room Inn of Naples in Naples, Fla.
After renovating the hotel’s public spaces, MCR will convert the hotel to a Hilton Tapestry. The Inn of Naples Hotel & Suites Tapestry by Hilton is slated to open in August 2021.