Peachtree acquires two hotels in Florida; more transactions
Transactions and financing continue as the hospitality industry recovers from the COVID-19 pandemic, with deals including two acquisitions for Peachtree Hotel Group that bring the company’s total for the year to around $ 2 billion. dollars.
Peachtree Hotel Group acquires two hotels
Peachtree Hotel Group has acquired the 207-key AC Hotel Miami Aventura and 233-key Aloft Miami Aventura in Aventura, Fla., Which is part of the Miami metro area. Peachtree Hospitality Management, a division of Peachtree Hotel Group, will operate the properties.
These acquisitions are the latest made by Peachtree, closing just weeks after the acquisitions of the 81-key Hampton Inn & Suites and 60-key La Bellasera Hotel & Suites, both in Paso Robles, California. For the year, Peachtree acquired approximately $ 2 billion in hotel assets and plans to continue growing through opportunistic hotel acquisitions as part of the current hospitality recovery cycle.
“Our growth strategy since Peachtree’s inception has been to capitalize on cycle-specific opportunities,” said Greg Friedman, CEO of Peachtree. “Today we see opportunities to acquire hotels at attractive levels, which has not been available over the past 15 months.
“With the strengthening of favorable economic winds stimulating hotel fundamentals and attractive capitalization rates compared to other asset classes, the accommodation sector is among the best real estate classes to invest. Additionally, with the current inflationary environment, hotels are an excellent hedge against inflation due to daily adjustments in average daily rates.
AC Hotel Miami Aventura is across from Aloft Miami Aventura. The properties opened in 2017 and 2018, respectively. The properties are close to major attractions, including the Aventura Shopping Center and the Aventura Culture and Arts Center. The hotels are also located close to the Aventura Hospital and Medical Center and the Gulfstream Park Racing and Casino.
“These acquisitions are an opportunity to acquire valuable properties in a prime location of Greater Miami and Miami Beach, which offers a significant mix of business and tourism travel,” said Brian Waldman, executive vice president, investments , Peachtree. “The acquisition of these Marriott-branded lifestyle hotels also aligns with our strategy of owning growing RevPAR hotels in destinations, city centers and lifestyle hubs. “
The AC Hotel Miami Aventura is located next to an office campus, with plans for retail and entertainment development as well as a new office tower. The Aloft Miami Aventura is located in a mixed-use neighborhood, containing residential, office, medical, assisted living and retail components.
Terms of the transactions were not disclosed.
RobertDouglas advises Waterton on the $ 30M financing for the acquisition
RobertDouglas advised Waterton in securing a $ 30 million non-recourse first mortgage for the acquisition and renovation of the Sierra Nevada Resort and Spa in Mammoth Lakes, California. The variable rate financing was provided by a leading alternative credit manager focused on high quality variable rate debt.
“The loan has been structured to facilitate the acquisition and renovation of this irreplaceable property located in downtown Mammoth,” said Evan Hurd, Principal / Managing Director of RobertDouglas. “The highly institutional sponsorship and thoughtful business plan helped us find a lender who offered high pricing and flexibility in financing the redevelopment. “
The Sierra Nevada Resort & Spa was built in 1967 by Jerry Buss, a leading real estate developer and former owner of the Los Angeles Lakers. The historic property sits on 6.1 acres in downtown Mammoth Lakes and has 149 rooms. The resort will undergo a transformational renovation including the addition of 30 new keys to the property. The resort will be repositioned as an open-air boutique hotel with 179 keys following the renovation.
Mumford advises on two transactions
Mumford Company, a full-service hotel consulting firm, revealed recent sales of the Best Western Historic District in Williamsburg, Va., And the Microtel Inn in Erie, Pa., In separate transactions.
The new owners of the 140-unit Best Western in Williamsburg plan to complete mostly cosmetic renovations and keep the property within the Best Western system. Ed James and Steve Kirby, both senior directors of the Mumford Company, as well as Carter Willcox, a partner at the company’s head office in Newport News, Va., Represented the seller in the transaction.
The buyer of the Microtel Inn of Erie is planning major renovations and a conversion to the Sleep Inn brand. James, Kirby, George Arvanitis (Chicago) and Justin Pinkard (Washington, DC) of Mumford represented the vendor.