Hotel deals continue in first weeks of February

While the industry waits for travel numbers to pick up again, hotels are changing hands.


Legendary Capital acquired the 141-room Courtyard by Marriott in Aurora, Colo., for a $27.9 million contribution valuation. The transaction utilized the Umbrella Partnership REIT mechanism, allowing the real estate investment trust to acquire the property for minimal capital in exchange for operating partnership units and preserved equity for the contributor.  
The transaction was completed Feb. 4. National Hospitality Services has been selected as the hotel’s management company.  
“Economic downturns typically bring out the worst in buyers, but as experienced hoteliers, we are focused on partnering with our fellow hotel owners to acquire select properties and help them preserve their equity,” said Dave Durell, Legendary Capital chief investment officer. “Conducting an UPREIT transaction allowed both parties to meet their goals. We extend a warm welcome to our new unit holders and hotel operations team. We’re excited to add this gem to our portfolio.” 

The Courtyard by Marriott-Aurora is a newly developed hotel in the Denver metropolitan statistical area, which has a population of approximately 2.9 million people. Demand drivers include Buckley Air Force Base, major aerospace employers and health care facilities, includingthe University of Colorado Anschutz Medical Campus. The select-service hotel caters to business and leisure travelers and is located 15 minutes from Denver International Airport. 


The Roxborough Group, AWH Partners and West Point Partners acquired the Hilton Garden Inn Portland/Lake Oswego in Oregon. The deal marks the first hotel acquisition each company has closed since the beginning of the COVID-19 pandemic. The financial terms of the transaction were not disclosed.

"This deal demonstrates our ability to find attractive investment opportunities despite the challenging deal environment," said Chad Cooley, co-founder and managing partner of AWH Partners. "With our team in place, we believe the Hilton Garden Inn Portland/Lake Oswego is well positioned to quickly rebound from the pandemic. It has a lot to offer for both leisure and business travelers visiting the Portland area." 

Adjacent to the intersection of Interstate 5 and Highway 217, the busiest intersection in Oregon, the 179-room Hilton Garden Inn Portland/Lake Oswego is close to to Bridgeport Village, an outdoor shopping complex, and Kruse Woods Corporate Park, a 20-building office campus located in Lake Oswego; and a 10-minute drive from downtown Portland.

"One of the main reasons for investing in this property is its premier positioning in a great submarket," said Marc Perrin, managing partner of The Roxborough Group. "Lake Oswego is an increasingly attractive alternative to downtown Portland, and this hotel with its recent rooms renovation is the top performing asset in the submarket."

The hotel has an on-site restaurant, an indoor pool, a fitness center, pet-friendly rooms, a business center and nearly 1,225 square feet of event space. The partnership has additional plans to renovate the property over the next several years, including upgrades to the lobby and public spaces, as well as a new fitness center.

"We are excited to partner with AWH and Roxborough in the acquisition of the hotel," said Sri Sambamurthy, managing principal of West Point Partners. "The combination of an industry-leading brand in an infill submarket with strong demand drivers positions the hotel well for the recovery."


Hotel Capital sold the 181-guestroom Sheraton Galleria Metairie New Orleans in Metairie, La., to Jamal and Shereza Tajuddin of Generation Hospitality, who will operate the property. 

“The sale of the Sheraton Galleria represents an accretive acquisition for the buyer with a Marriott brand as the franchise partner,” said Len Wormser, SVP of HREC Investment Advisors New Orleans, who represented Hotel Capital on the transaction. “The seller was able to achieve their pricing guidance through a creative financing structure.” Hotel Capital purchased the hotel in 2017 from a consortium comprised of JDC Holdings, Songhy HighRoads, and HNW Family Office.

The property is visible from Interstate 10, one of the region’s highest traffic volume corridors, which cuts through New Orleans and provides access from the Mississippi state line to the Texas state line. The estimated 180,000 cars traversing this intersection daily represent a combination of local business and Interstate 10 traffic. The hotel, located at the southeast quadrant of the intersection, adjacent to the 22-story Galleria office complex, places the Sheraton in the economic center of the Metairie/New Orleans metropolitan statistical area.