hotel sale
Ensuring Your Deal Closes: Three Areas to Focus On
Eric Guerrero | October 31, 2024
Both buyers and sellers want a seamless hotel transaction closing, but a variety of potential pitfalls can slow a deal’s closing. Below, we review three key areas of a hotel sale that may present obstacles: financing, PIP costs, and property insurance premiums. We also provide recommendations that help you to anticipate and prevent issues. Financing Securing debt at a reasonable market rate with good terms is still one of largest obstacles in closing a deal. In order to obtain a good loan, a buyer must have a strong balance sheet with a credible global cash-flow and solid track record of success in owning and operating other hotels. Bu...
Paramount Lodging Advisors Closes Out the Sale of the Courtyard by Marriott and Hampton Inn Statesville, NC
Paramount Lodging Advisors | October 28, 2024
Paramount Lodging Advisors (PLA) has successfully transacted the Courtyard by Marriott and Hampton Inn Statesville, NC. PLA Partners Mike Schlictman and Andrew Makhlouf represented the seller in the transactions. The 94-room Courtyard and 80-room Hampton Inn are both proximate to all local leisure demand generators, most notably Statesville Civic Center, Lake Norman, and Statesville Park and Soccer Complex. The properties were sold individually as part of a larger institutional portfolio sale. “As part of our ongoing efforts to deliver exceptional results for our clients, we’re proud to have recently brokered the sales of two instit...
A Brief Guide to Maximizing the Marketing and Buyer Activity of Your Hotel Listing
James Rebullida | September 30, 2024
Hotels are one of the few commercial real estate asset classes that have an operating business component. As such, selling a hotel is a complex process that requires strategic planning and execution to attract the most suitable buyer to successfully complete the transaction. As a hotel owner considering selling your property, you must understand how to maximize the marketing exposure and buyer activity for your listing. Here at HVS Brokerage & Advisory, we strive to follow a few key principles and best practices to enhance your property’s appeal, streamline the sale process, and ultimately secure a highly qualified buyer. These princip...
Braemar Hotels & Resorts Closes Sale of Hilton La Jolla Torrey Pines for $165M
Braemar Hotels & Resorts | July 18, 2024
DALLAS, July 18, 2024 -- Braemar Hotels & Resorts Inc. (NYSE: BHR) ("Braemar" or the "Company") today announced that it has closed on the previously announced sale of the Hilton La Jolla Torrey Pines for $165 million ($419,000 per key). Including anticipated capital expenditures of $40 million, the sale price represents a 7.2% capitalization rate on net operating income for the trailing twelve months ended March 31, 2024. The Company continues to evaluate the sale of two more hotels, subject to market conditions, to be completed in 2024 and 2025, respectively. "We are pleased to announce the closing of the sale of the Hilton...
Paramount Lodging Advisors (PLA) Arranges the Sale of the Doubletree Jersey City
Paramount Lodging Advisors | July 17, 2024
Paramount Lodging Advisors (PLA) is pleased to announce the sale of the Doubletree Jersey City. PLA transacted the 198-room asset through a receiver sale. The buyer purchased the property with an assumption of the existing CMBS debt. Sales efforts were led by PLA Principals Bennett Webster and Brent Clemens, and PLA director Sean Banilivy. “Our team remains bullish on the market and we look forward to continued strong positive RevPAR trajectory for New York City and surrounding areas. We were pleased to be able to trade with the debt assumption amidst continued uncertainty in capital markets,” noted Webster. PLA is now also...
Xenia Hotels & Resorts Completes Disposition of Lorien Hotel & Spa
Xenia Hotels & Resorts | July 10, 2024
ORLANDO, Fla., July 10, 2024-- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced it has completed the disposition of the 107-room Lorien Hotel & Spa in Alexandria, VA, for $30 million, or approximately $280,000 per key. The sale price represents a 21.3x multiple and a 3.1% capitalization rate on Hotel EBITDA and Net Operating Income for the trailing twelve months ended May 31, 2024, respectively. Proceeds will be utilized for general corporate purposes, which may include share repurchases, debt repayment, capital expenditures and acquisitions consistent with the Company's long-term strategy....
Host Hotels & Resorts Acquires 1 Hotel Nashville and Embassy Suites By Hilton Nashville Downtown
HOST HOTELS & RESORTS | May 2, 2024
BETHESDA, Md., May 02, 2024 -- Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”), the nation’s largest lodging real estate investment trust, today announced that it has acquired the fee simple interest in a two-hotel complex comprising the 215-room 1 Hotel Nashville and the 506-room Embassy Suites by Hilton Nashville Downtown (together, the “Property”) for approximately $530 million in cash. The acquisition price represents a 12.6x EBITDA multiple or a cap rate of approximately 7.4% on the Property’s 2024 estimated results1. The Property is expected to be among Host’s top-25 assets based on estimated full year 2024 ...
Ashford Hospitality Trust Completes Sale of Residence Inn Salt Lake City
Ashford Hospitality Trust | March 12, 2024
DALLAS, March 12, 2024 -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today announced that it has closed on the sale of the 144-room Residence Inn located in Salt Lake City, Utah (the "Hotel") for $19.2 million. When adjusted for the Company's anticipated capital expenditures, the sale price represented a 4.6% capitalization rate on 2023 net operating income, or 18.2x 2023 Hotel EBITDA. Excluding the anticipated capital spend, the sale price represented a 6.0% capitalization rate on 2023 net operating income, or 14.0x 2023 Hotel EBITDA. All of the proceeds from the sale were used to pay down debt....
