JV adds 1,000 rooms to portfolio with six-hotel acquisition

Aug 03, 07 | 1:57 am
By Barbra Murray, CPN

GoldenTree InSite Partners has teamed up with Aimbridge Hospitality and JF Capital Advisors on the acquisition of six Doubletree and Wyndham Garden Hotels properties located predominantly in key suburban markets in the Midwest. The purchase was made as part of the strategic alliance the three entities formed in January of this year for the purpose of acquiring $500 million in hotel assets over a two-year period.

The team relied on debt financing from Lehman Brothers to facilitate the transaction. Two of the hotels are located in the suburban Chicago market, and three more sit just outside of Schaumburg, Ill., Overland Park, Kans., and Novi, Mich. The remaining hotel is in the Charlotte, N.C., area. Each of the properties is in growth mode, yet they are value-add assets and the partnership will invest several million of dollars in additional upgrades. Aimbridge already has a connection to the properties, having made its debut in the hotel management industry in 2003 by securing franchise agreements for the six properties and two additional hotels from Crow Holdings, which had just acquired the eight-hotel portfolio. GoldenTree, Aimbridge and JF Capital worked together before, prior to their $500 million acquisition quest. In August 2006, the partners joined forces to buy and renovate the 300-room Doubletree Hotel Dallas-Campbell Centre and the 248-room Doubletree Hotel Denver-Southeast in Aurora, Colo.

Across the country, the hospitality market is picking up--and in some cases, thriving--partially due to a boost in corporate travel, according to Ernst & Young's 2007 U.S. Lodging Report. Continued positive growth is anticipated for this year, with RevPAR and the average daily room rate on target to increase further.

GoldenTree, based in New York City, is an international real estate investment firm that commits capital to residential, retail, industrial, office, hotel and mixed-use projects. Carrollton, Tex.-headquartered Ambridge is a hotel real estate and management firm that operates properties carrying the Doubletree, Wyndham and Hilton Garden Inn flags. New York City's JF Capital is a hospitality investment and advisory firm that has completed approximately $12 billion in mergers and acquisitions and capital market transaction in the hospitality sector.

Source: Commercial Property News