Transactions and financing heat up
The industry continues to rebound from the effects of the pandemic with purchase and financing agreements.
Oxford Capital Group acquires Thompson Chicago
Oxford Capital Group LLC has acquired the 247-room luxury hotel Thompson Chicago. The company’s wholly owned subsidiary, Oxford Hotels & Resorts LLC, also takes care of the management of the property.
Thompson Chicago joins Oxford’s growing national lifestyle hotel portfolio, which includes the Godfrey Hotels in Chicago; Boston; Tampa, Florida; and Hollywood, CA (with several additional locations in the pipeline); LondonHouse; Julian Hotel; Le Méridien Essex Chicago; Griffon Hotel; Vertige Hotel; among others.
Thompson Chicago, which will remain an affiliate of Hyatt’s luxury lifestyle hotel brand, Thompson Hotels, initially opened in 2013. It is the 25th Oxford lifestyle hotel transaction and the 15th Chicago hotel project.
Chatham Lodging Trust purchases extended stay hotels in Austin
Chatham Lodging Trust, a hotel real estate investment trust (REIT) focused on investing in high-end, long-stay hotels and premium select-service hotels, as part of an off-market transaction, acquired two 269-room hotels at the Estate in Austin for $ 71.2 million, or approximately $ 265,000 per room.
The acquired hotels include the 132-room Residence Inn Austin Domain, which opened in July 2016, and the 137-room TownePlace Suites Austin Domain, which opened in June of this year. Once stabilized, the acquisitions are expected to generate an estimated NOI return of 8.0% to 8.5%.
The estate is a mixed-use development known as Austin’s “second downtown” with over 4.2 million square feet of office space, 1.8 million square feet of retail space. retail, plus an additional 2.8 million square feet of office space. is expected to be delivered over the next two years and another 3.8 million square feet of office space expected thereafter. Companies with large offices located at The Domain include IBM, Amazon, Facebook, Indeed, Expedia / VRBO, and Trend Micro Companies. Apple is currently building a 2 million square foot office campus about five miles from the properties, which will cost more than $ 1 billion and potentially accommodate around 15,000 employees. For comparison, Apple Park, Apple’s main campus in Cupertino, California, measures approximately 2.8 million square feet.
Chatham funded the purchase using a portion of the proceeds from the recently completed Series A Preferred Share offering. The hotels will be managed by Island Hospitality Management.
The Mr. C Beverly Hills Hotel has purchased
Braemar Hotels & Resorts Inc. has completed the acquisition of the 138-room Mr. C Beverly Hills hotel in Los Angeles.
In addition, the company acquired five luxury condominium residences adjacent to the hotel. Total consideration for the acquisition was $ 77.9 million and consisted of $ 65.4 million for the hotel ($ 474,000 per key) and an awarded price of 12.5 million dollars for the five adjacent condominium units. The acquisition was funded with approximately $ 30 million in cash, 2.5 million PO units, 500,000 warrants with an exercise price of $ 6 and a mortgage loan of $ 30 million. For the purpose of calculating the total consideration for the transaction, a price of $ 6 per share was assumed.
RobertDouglas, a real estate consulting firm specializing in providing capital solutions to the hospitality industry, assisted Braemar in this transaction. Remington Hotels will operate the hotel.
JMA Ventures makes two investments
JMA Ventures LLC recently closed on two investments.
In June, Southern California-based JMA Ventures and LLJ Ventures completed the purchase of Marigot Bay Resort and Marina on the island of St. Lucia in the southern Caribbean. The transaction involved a complicated tripartite structured arrangement with the project’s lender and borrower and allowed JMA’s subsidiaries to take full control of the complex and marina operations as it embarks on a full reinvestment and change. brand of the complex.
In addition, JMA’s growing credit strategy activity has announced the closing of a construction loan interest for a luxury hotel and residence project under construction in Park City, UT. JMA was able to leverage its deep experience in the hill station and hospitality markets and its in-house team of development leaders to quickly underwrite an investment in an attractive tranche of the existing construction loan, the company reports.