Hotels in the U.S continue to trade at a high rate with prospective buyers continuing to look for positions within an industry that is benefitting from high demand and low supply growth, which is underpinning propitious market fundamentals. Here's a look at the most recent hotel transactions.
Ft. Lauderdale Find
The biggest transaction of the day comes from South Florida, where news broke that a company headed by the owner of the Miami Dolphins has acquired the W Hotel & Residences in Fort Lauderdale.
Stephen Ross, who owns New York-based Related Cos. Related Fund Management, an affiliate of Related, bought the hotel from Capri Resorts LLC, a company linked to South Florida developers John Yanopoulos and Reed Dale, for an undisclosed amount. However, it was revealed that the hotel's condo units were acquired for $90 million.
The 23-story hotel, which will remain a W, includes 346 hotel rooms and 171 condo-hotel units. The hotel was developed in 2009 at a cost of $430 million, according to the Sun Sentinel.
Meanwhile, farther north, RLJ Lodging Trust has acquired Hyatt’s Atlanta Midtown hotel for $49.5 million. The REIT says it purchased the 194-room hotel with proceeds from its recent equity offering.
Back in Florida, the Holiday Inn LPGA Boulevard hotel has new ownership. Hanover, Mass.-based Linchris Hotel Corp. bought the 96-room hotel for $7.7 million from New York City-based Glenmont Capital Management and Sandy Springs, Ga-based Peachtree Hotel Group, reports The Daytona Beach News-Journal
Glenmont and Peachtree bought the hotel in a joint venture in 2011 for $7.8 million.
Bay City Buy
Over in the Midwest, a former Holiday Inn and Three Palms Hotel in Bay City, Mich., was sold for $1.025 million to a local, a Michigan-based businessman who has holdings in a variety of real estate, including several hotels.
As M Live reports, the 46-year-old, four-story property was acquired in August 2013 by Javelin Investment Fund IV LLC for $1.9 million.
It was sold at auction with bids starting at $300,000.