Hotel & Motel Management: Transactions

On the block

Jones Lang LaSalle Hotels is marketing the 192-room Hotel Monaco Chicago, the 189-room Hotel Monaco Denver and the 225- room Hotel Monaco Salt Lake City on behalf of Kimpton Hotels & Restaurants.

Sonnenblick-Goldman Co. has been retained by Capitol Regency LLC to advise on the potential sale of the 503-room Hyatt Regency Sacramento at Capitol Park.

Financing

FelCor Lodging Trust completed a $115-million tender offer in principal amount of its outstanding 9.5-percent senior notes due in 2008, which currently bear an interest rate of 10 percent.

The Miami office of Holliday Fenoglio Fowler arranged a $110-million construction loan for The Q Club, a 333-unit luxury condominium-hotel development project in Fort Lauderdale Beach, Fla. HHF worked on behalf of Costa Dorada Associates to arrange the three-year, adjustable-rate financing through Hypo Real Estate Capital Corp.

Innkeepers USA Trust, a real-estate investment trust, replaced with a majority of lenders the company's existing $135- million revolving unsecured line of credit. Participating lenders include Wells Fargo; the New York branch of Calyon; Wachovia Bank; and PNC Bank.

Nationwide Life Insurance Co. became the largest investor in Rockbridge Capital LLC's most recent real-estate fund by increasing its commitment to $18 million from $15 million. In a separate transaction, Rockbridge closed an $8-million mezzanine investment in the refinance of the 304-room Marriott located in Lake Mary, Fla. The sponsor is RDA Investments of Delaware.

Sonnenblick-Goldman Co. arranged a $475-million recapitalization for Morgans Hotel Group, formerly Ian Schrager Hotels, and its partner NorthStar Capital Investment Group. The debt was secured by five hotels: the Morgans, the Royalton and the Hudson in New York; the Delano in Miami; and the Mondrian in Los Angeles. The financing was co-sponsored by Greenwich Capital, Credit Suisse First Boston and Blackacre Capital Management.

Agreements

Country Hearth Inn and Nevada-based Travelers Host signed a master license agreement for the development of 23 Country Hearth Inns during the next five years in the western corridor of the United States.

The Indiana Gaming Commission selected Trump Hotels & Casino Resorts to build and operate a casino in Orange County, Ind. The casino will be connected to Boykin Lodging Co.'s French Lick Springs Resort and Spa.

Openings

Aspen Hotels of Alaska opened its sixth Extended Stay Suites in Alaska, a 138-unit all-suite hotel in downtown Anchorage.

Bowling Green Enterprises Ltd. opened a 73-room Holiday Inn Express in Bowling Green, Ohio. The property is managed by S&S Management.

Owner Charlevoix Land Co. and management company Three Rivers Hospitality LLC opened a 53-room AmericInn Lodge & Suites in Charlevoix, Mich.

Drury Inns opened a 138-room Drury Inn & Suites hotel in Birmingham, Ala. Matt Henson is the g.m.

Drury Southwest Corp. opened a 102-room Drury Inn & Suites hotel in Lafayette, La. Chad Nottmeier is the g.m.

Lafrance Hospitality LLC of Wesport, Mass., opened a 96-unit Comfort Inn & Suites in Dover, N.H.

Kiawah Island Golf Resort opened The Sanctuary at Kiawah Island, S.C. Ninety percent of the 225 guestrooms at the $125- million oceanfront resort have ocean views.

OI Properties LLC opened a 59-room AmericInn Lodge & Suites in Oswego, Ill.

SoLita SoHo Hotel LLC opened the 42-room upscale SoLita SoHo Hotel, a Clarion Collection Hotel in New York. The new- construction, 12-story property will have a new restaurant open in December.

Sun Development & Management Corp. opened a 148-suite Staybridge Suites hotel in Aurora, Ill.

Owner Vanquish Vail and manager Bharat Bhakta opened a 115-room Holiday Inn Hotel and Suites in Vail, Colo.

Acquisitions

Arlington Hospitality sold a 61-room AmeriHost Inn in Hudsonville, Mich., to P&P Hotels LLC for an undisclosed amount. Thompson Calhoun Fair LLC advised Arlington in the disposition of the property.

Ashford Hospitality Trust completed the acquisition of a four-property, 365-room portfolio from Day Hospitality Group for $25.9 million in cash. The portfolio consists of a Hampton Inn and a SpringHill Suites by Marriott in Buford, Ga.; and a SpringHill Suites and a Fairfield Inn & Suites in Kennesaw, Ga. Day Hospitality will continue to operate the properties.

An affiliate of Aspen Hotel Group agreed to acquire the 130-room Mallory Hotel and Garage in downtown Portland, Ore., from Malco Hotel. Details were not released.

Affiliates of Blackstone Real Estate Advisors signed a binding agreement with Outrigger Enterprises to acquire the Waikoloa Beach Marriott and Wailea Marriott resorts in Hawaii. Details were not disclosed.

CB Richard Ellis represented Brentwood Hotels LLC in the $19.35-million sale of the 120-room Greenbelt, Md., Residence Inn to Hersha Hospitality.

Management

Tennessee-based Equity Inns entered into an agreement to purchase four Hampton Inns and one Hampton Inn and Suites property in Southern Florida from an undisclosed seller for $73.8 million. The five hotels collectively have 587 guestrooms, and will continue to be operated by Green Park Management. In a separate transaction, Equity Inns entered into an agreement to purchase a 93-room Courtyard by Marriott in Dalton, Ga., and a 112-room Hilton Garden Inn in Louisville, Ky., for $14 million. Equity is acquiring the properties from two limited partnerships. The hotels will continue to be managed by LinGate Hospitality Group of Owensboro, Ky.

HEI Hospitality acquired the 256-room Boca Raton (Fla.) Marriott from Crocker Center Associates III Ltd. for an undisclosed sum. The hotel will undergo a $5-million renovation. It will be managed by Merritt Hospitality, a wholly owned subsidiary of HEI. Laurence Magor is the new g.m. Hodges Ward Elliott brokered the sale. In a separate deal, HEI Hospitality acquired the 392-room Marriott Hunt Valley in Baltimore from a joint venture of Boykin Lodging Co. and Davidson Hotel Co. for $31 million. Merritt Hospitality will manage the property.

Highland Hospitality acquired four hotels comprising 1,687 guestrooms from Wyndham International for $227 million--about $134,500 per room. The portfolio consists of the 510-room Hilton Parsippany (N.J.); the 495-room Crowne Plaza Atlanta-Ravinia; the 360-room Wyndham Wind Watch Hotel in Hauppauge, N.Y.; and the 322-room Tremont Boston. Crestline Hotels & Resorts will manage the Hilton Parsippany, the Crowne Plaza Atlanta-Ravinia and the Tremont Boston. The Wyndham Wind Watch Hotel will be converted to the Hyatt Regency Wind Watch Long Island and be managed under a contract with Hyatt Hotels.

Hersha Hospitality Trust agreed to terminate its eight remaining leases with Hersha Hospitality Management LP retroactive to April 1, 2004. The eight properties entered into leases with 44 New England Management Co., HHT's taxable REIT subsidiary.

Compiled by Jeff Higley, jhigley@advanstar.com