The latest hotel development and M&A news from around the world.
Azora buys in Madrid. Meridia Capital, through its vehicle Meridia RE III, has
sold to Madrid-based investor Azora the 199-room Madrid Chamartín
(formerly Tryp Chamartín) for €34.6 million. The transaction, which yields
a capital gain of €7.5 million for Meridia, includes two adjacent
commercial spaces and 94 parking spaces. Meridia acquired the asset for €27.5
million in January 2019. The hotel is located near the Madrid Nuevo Norte
mega-development project.
Host sells to KHP in Phoenix. KHP Capital Partners has reportedly acquired the 277-room
Camby, an Autograph Collection hotel in Phoenix, for $110 million ($397,000 per
key) from Host Hotels & Resorts, who provided $84.45 million of seller financing.
The sale price equates to 12.5x Hotel EBITDA and a 7.1% NOI cap rate, reported
R.W. Baird. The hotel, built in 1998 as a Ritz-Carlton, is located across the
street from Biltmore Fashion Park. Host renovated and rebranded as The Camby in
late 2015.
San Jose site heads to auction. A site in San Jose, California, slated to become a 200-room
hotel is reportedly headed to auction due to a delinquent loan. South
Korea-based Mirae-San Jose bought the 3.2 acres of land for the hotel site in
2019, paying $22.5 million. Mirae took a $26.4 million loan at the time of the
deal from Pine Tree Specialized Private Investment Trust and KEB Hana Bank. The
lenders reported the loan was in default in October 2022. At that time, the
total owed, including interest, late fees and penalties, had swelled to $34.4
million.
Europe's hot spots. Ten cities in Europe are the most popular for hotel
investment in 2023, according to new data from Deloitte. The first three cities
on the list are Amsterdam, Lisbon, and London. Paris, Madrid, and Barcelona
follow. Rome, Berlin, Athens, and Dublin occupy the last four places on the
list. The report also showed that the U.K. (37%), Germany (29%), and Ireland
(28%) are now considered destinations with low investment interest. Greece
(31%), Spain (33%), and Portugal (33%) have shown increased investor interest.
In the U.K., Edinburgh is the number one region for investors’ interest.
Further, the report stated that private equity was the main investment format
for new hotels in 2022.
Quality Inn in Florida sells. The recently renovated 117-room Quality Inn Kennedy Space
Center in Titusville, Florida has been sold by Frontier
Hospitality LLC for $7.4 million to Jay Jagannath Hospitality LLC. DSH
Hotel Advisors represented the seller and the buyer.