Despite the travel and economic downturns, hotels are still changing hands, with notable companies selling properties and portfolios for millions.
Newton, Mass.-based real estate investment trust Service Properties Trust completed the sale of eight TownePlace Suites-branded hotels with 834 rooms and a net carrying value of $35 million for an aggregate sales price of $45.3 million, excluding closing costs. The proceeds from the sale will be used for the repayment of debt.
“Given current market conditions, we are pleased to complete the sale of this hotel portfolio, which we had identified for disposition in late 2019,” said John Murray, president and CEO of Service Properties Trust. “We were successful in achieving pricing consistent with prepandemic valuations, demonstrating extended-stay lodging’s outperformance versus other hospitality segments, both operationally and in terms of asset value retention during the pandemic.”
Host Hotels & Resorts
Host Hotels & Resorts sold the Newport Beach (Calif.) Marriott Hotel & Spa to Newport Beach-based Eagle Four Partners and Lyon Living.
“Subsequent to quarter end, we sold the 532-key Newport Beach Marriott Hotel & Spa for approximately $216 million after retaining [furniture, fixtures and equipment] reserves,” said Host President and CEO James. F. Risoleo during the company’s third-quarter earnings call. “We are pleased to capitalize on these opportunistic sales at attractive pricing that enhance our liquidity and reduce our near-term capital spending requirements.”
Robert J. Webster, Michael DiPrima and Diana Simpson of CBRE Hotels represented Host. Mark K. Owens and Bill Grice led the CBRE Hotels debt & structured finance team, which secured $170 million in acquisition and renovation financing for the buyers, who plan to perform a comprehensive renovation of the property.
Caesars & Vici
Caesars Entertainment and Vici Properties completed the sale of Bally’s Atlantic City (N.J.) to Bally’s Corp., previously known as Twin River Worldwide Holdings, for $25 million.
The proceeds of the transaction were split 75 percent to Vici and 25 percent to Caesars, while the annual base rent payments under the regional master lease between Caesars and Vici remain unchanged.