10 Big National Hotel Deals In Q3
Though the hospitality industry suffered from declining RevPAR, slowing demand and growing supply this past quarter, there also was a lot of merger and acquisition activity nationwide that led to major industry consolidation.
Take a look at 10 noteworthy hotel transactions from Q3, according to JLL's third quarter Lodging Investment Outlook report.
Strategic Hotels & Resorts Portfolio
Buyer: Anbang Insurance Group
Seller: Blackstone Group
After pulling out of its $13.6B Starwood Hotels & Resorts merger earlier this year following an intense bidding war with Marriott International, many were skeptical of Chinese insurer Anbang's bid for Blackstone Group's Strategic Hotels & Resorts portfolio. But it's safe to bet the transaction is a done deal now that Anbang is nearly finished paying off the $5.5B takeover.
Andaz Fifth Avenue New York
Buyer: Takenaka Corp
Seller: Hyatt Hotels Corp
New York's Andaz Fifth Avenue hotel, which is less than six years old, sold to Japanese architecture firm Takenaka Corp in July. A Hyatt Hotels affiliate unloaded the luxury boutique, reportedly for $215.2M, or $1.2M/room, marking Takenaka's entry into the NYC hotel market.
Homewood Suites New York Midtown
Buyer: Alduwaliya Hospitality Co
Seller: Rockwood Capital
Alduwaliya Hospitality, the hospitality vehicle of Qatar-based Alduwaliya Asset Management, bought Hilton Homewood Suites for $167M in July. The 22-story, 293-room hotel is the Qatari firm's second NYC deal. Alduwaliya acquired a New York 17-story office building at 250 West 39th St for $125.3M last December.
Marriott Indianapolis Downtown Indianapolis
Buyer: White Lodging Services Corp
Seller: LaSalle Hotel Properties
White Lodging closed on its purchase of Indianapolis-based Marriott Downtown in July. This was a property the Merriville, IN-based hotel owner and management company had originally owned and developed more than 15 years ago. The 622-room hotel is undergoing renovations set to be unveiled the beginning of next year.
Marriott San Jose
Buyer: Watermark Capital Partners
Seller: CB Richard Ellis Investors
Watermark Capital's real estate investment arm, Carey Watermark Investors 2 Inc, grabbed San Jose Marriott for $154M—$88M of which was financed through debt. The deal for the 510-room hotel was completed in July following a $10M facelift completed in 2014, 10 years after the 27-story hotel's birth.
Buyer: Walton Street Capital
Seller: DiamondRock Hospitality Co
This 821-room hotel is Minnesota's largest and sold for $9M less than what REIT DiamondRock purchased it for in 2010. Walton Street grabbed the 25-story hotel at a bargain for roughly $174k/room. The deal closed as part of DiamondRock's divestment of its non-core assets from its portfolio of 26 hotels. Hilton Minneapolis was built in 1992 and boasts about 77k SF of meeting space, a hip restaurant/bar and an indoor pool.
Marriott San Diego La Jolla
Buyer: Watermark Capital Partners
Seller: HEI Hotels & Resorts
Around the same time it grabbed Marriott San Jose from CB Richard Ellis Investors, Carey Watermark Investors bought Marriott San Diego for $137M. The 372-room hotel has received $21M worth of improvements since 2011, and further expanded CWI 2 REIT's presence on the West Coast.
Buyer: New England Development
Seller: The Indian Hotels Co
A consortium of real estate investors, including New England Development, officially closed on the purchase of India-based Taj Group's Taj Boston in July. Taj had initially planned to put the hotel on the market for $125M—about $45M less than its last purchase price. Other investors include Eastern Real Estate, Rockpoint Group, Lubert-Alder and Highgate.
Autograph Collection The Envoy Hotel
Buyer: Hersha Hospitality Trust
Seller: Norwich Partners
Of those vying for Boston's one-year-old Envoy Hotel when it went on the market, Philadelphia-based REIT Hersha Hospitality won the bid for the 136-room boutique hotel for about $113M. The six-story boutique straddles downtown Boston and the Seaport, and is home to popular rooftop bar Lookout.
Aloft South Beach
Buyer: Rockpoint Group
Seller: JMH Development
On speculation that the hotel industry in Miami has become overheated, according to The Real Deal, New York's JMH Development sold Aloft South Beach to Rockpoint Group in September. The eight-story hotel was built in 2015 on the historic 1954 Ankara Motel site and includes 235 rooms.
CORRECTION, DEC. 20, 4:52 P.M. ET: The sale price for the Aloft South Beach hotel was incorrect in the previous version of this story. The property sold for $105M.