Nine Select-Service Hotels Sold; Closing of Final Six Assets In 15-Hotel Portfolio Slated For November
By Randyl Drummer Co-Star July 17, 2015
Pinnacle Hotel Management (PHM) has sold or is in the process of selling 15 select-service Marriott- and Hilton-branded hotels to the Blackstone Group for $203 million.
Nine of the hotel properties have sold, including the 94-room Homewood Suites by Hilton Daytona Beach Speedway-Airport at 65 Bill France Blvd. in Daytona Beach, FL. (CoStar COMPs #3342740) The remaining six hotels under contract are scheduled to close in November, according to Hunter Hotel Advisors, which represented Royal Palm Beach, FL-based Pinnacle, a private owner and developer of Marriott and Hilton hotels.
The parties did not immediately disclose which of the 15 properties have closed other than the Daytona Beach asset. However, 10 of the properties are Residence Inn branded hotels located in the following markets: Weston, FL, east of Fort Lauderdale; Avon, CT; Newark, DE; Ann Arbor, MI; Anaheim Hills, CA; Warwick, RI; Tewksbury, MA; Lake Mary, FL; Waldorf, MA; and Sacramento, CA.
The portfolio also includes TownPlace Suites properties in Tewksbury, MA and Weston, FL; Courtyard St. Petersburg, St. Petersburg, FL; and Homewood Suites assets in Daytona Beach and Lake Mary, FL.
“At this point in the cycle, premium, select-service portfolios are scarce, allowing Pinnacle to take advantage of prices hovering around all-time highs,” said Teague Hunter, president of Hunter Hotel Advisors. “Nine months in the making, this complex transaction served the future growth plans of both parties.”
Hunter’s Washington, D.C., and Atlanta offices worked together on the transaction, led by Teague Hunter, Mark Morris and Kyle Stevenson, both senior vice presidents.
The sale of the portfolio, with properties located in growth markets along the Eastern Seaboard, Florida and California, allows Pinnacle Hotel Management to recycle capital while retaining long-term management agreements, said Ron Franklin, PHM president/principal.