SANTA BARBARA, CALIF. — Hersha Hospitality Trust has acquired the 122-room Hotel Oceana in Santa Barbara for $41.7 million. The resort is located at 202 W. Cabrillo Blvd. near Santa Barbara Harbor. The hotel reported a 92 percent occupancy rate in 2013. “We recently completed the sale of 16 non-core assets, and the completion of the Hotel Oceana acquisition is further indication of our commitment to prudently recycle capital,” says Jay H. Shah, Hersha’s CEO. “These initiatives have resulted in a refined pure play transient focused portfolio with exposure to the highest demand gateway markets in the United States. Together with our properties in San Diego, Los Angeles and the San Francisco Bay Area, the company’s West Coast assets are positioned to leverage solid growth fundamentals and limited supply growth in some of the leading markets on the West Coast.” The Oceana acquisition was funded with a portion of the net proceeds from the non-core portfolio sale. It included the assumption of $24.9 million in mortgage debt at a fixed rate of 4.4 percent that will mature in 2023.
Hospitality
JEKYLL ISLAND, GA. — Jekyll Oceanfront Hotel LLC, a joint venture between Leon N. Weiner & Associates Inc. and New Castle Hotels & Resorts, has topped off the $41 million Westin Jekyll Island. The 200-room beachfront hotel is located adjacent to the new Jekyll Island Convention Center. The new hotel, which is slated for completion later this year, will be part of the Jekyll Island Beach Village project. Memphis, Tenn.-based LLW Architects designed the U-shaped, five-story hotel to achieve LEED Silver certification. Pinkerton & Laws of Georgia Inc. is the hotel’s general contractor.
CLEVELAND, OHIO — Noble Investment Group has acquired four Residence Inn by Marriott hotels within the Greater Cleveland area for a reported $53.4 million. The acquisition included the 174-room Residence Inn Cleveland Beachwood for $19.4 million; the 175-room Residence Inn by Marriott Cleveland Downtown for $15.4 million; the 118-room Residence Inn Cleveland Independence for $9.7 million; and the 96-room Residence Inn Cleveland Mentor for $9 million, according to Crain’s Cleveland Business. All four assets were purchased through investment funds, including NF II Beachwood LLC, NF II Cleveland LLC, NF II Independence LLC and NF II Mentor LLC, respectively. Each hotel is set to undergo significant renovations.
HONOLULU — Inland American Lodging Group, Inc. has acquired the 645-room Aston Waikiki Beach Hotel in Honolulu for $183 million. The resort is located on Waikiki Beach along Kalakaua Avenue. It also features a heated outdoor swimming pool, sun deck, 19,400 square feet of retail space, and 3,300 square feet of indoor and outdoor meeting space, including the 1,288-square-foot Coconut Club. The retail space is fully leased by Tiki's Bar & Grill and Wolfgang Puck's Express. The hotel will continue to be managed by Aston Hotels & Resorts. Inland American Lodging Group is a wholly owned subsidiary of Inland American Real Estate Trust, Inc.
LOS ANGELES – The James hotel brand has made its way onto the Sunset Strip. CIM Group and its joint venture partner Denihan Hospitality Group have announced The James Los Angeles will open in West Hollywood in 2016. It will be located at the southeast corner of Sunset and La Cienega boulevards within CIM’s two-block Sunset La Cienega mixed-use development. The 286-room hotel will be the first new ground-up hotel in West Hollywood in about 30 years, according to CIM. The James Los Angeles will feature two restaurants, a rooftop and lobby bar and about 10,000 square feet of meeting space. CIM is designing and developing both The James Los Angeles and two residential towers across La Cienega that will contain 190 units and about 40,000 square feet of retail space. This will be the fourth hotel to operate under The James brand. There are additional hotels in Chicago, New York and Miami.
JACKSONVILLE, FLA. — CBRE Hotels has arranged the sale of the Hyatt Regency Jacksonville Riverfront, located at 225 E. Coastline Drive in Jacksonville. The 963-room property is northeast Florida’s largest convention hotel, according to CBRE Hotels. The property is located on a four-mile riverfront boardwalk and features 110,000 square feet of meeting space. The hotel comprises 28 percent of all hotel rooms in downtown Jacksonville. Christian Charre, Paul Weimer and Natalie Castillo of CBRE Hotels in Miami, along with Patrick Arangio, Jack Howard, Kurt Altvater and Dave Dorros of CBRE’s national loan sale advisory group, brokered the transaction.
NEW YORK CITY — Massey Knakal Capital Services has arranged $80 million in bridge financing secured by Cassa Hotel, a 165-key hotel located in the Times Square submarket of Manhattan. An entity controlled by Angelo, Gordon & Co. was the lender. Scott Aiese of Massey Knakal arranged the loan. The four-star hotel benefits from more than 370,000 daily pedestrians.
NEW ORLEANS — Starwood Hotels & Resorts Worldwide Inc. plans to transform a 30-story building in downtown New Orleans into a new Aloft Hotel. The 188-room Aloft New Orleans Downtown will be located at 225 Baronne St. in the city’s Central Business District. The property will include 2,500 square feet of meeting space, an outdoor pool and 24-hour fitness center. 225 Baronne Complex LLC, an entity of HRI Properties, owns the hotel and HRI Lodging will manage it. The new hotel is slated to open in 2015. Starwood plans to complete two additional adaptive re-use projects for its Aloft brand this year — Aloft Detroit and Aloft Tampa Downtown.
MOBILE, ALA. — Homewood Suites by Hilton has opened a 99-suite hotel at 1388 W. I-65 Service Road S. in Mobile. The four-story hotel, known as Homewood Suites Mobile I-65/Airport Blvd., is expected to create 30 permanent jobs, according to Hilton Worldwide. Kana Hotel Group owns and manages the hotel. The property features complimentary breakfast and Wi-Fi, a restaurant, a 24-hour grocery shopping service, fitness center and a 24-hour business center.
YONKERS, N.Y. — Construction has begun on the 155-room Hyatt Place hotel development in the Cross County Shopping Center in Yonkers. LW Hotel Associates LP is developing the project, along with Friend Development Group LLC. LodgeWorks Partners LP will manage the hotel, which is slated to open in 2015. Guestrooms at the hotel will feature a 42-inch HDTV and complimentary Wi-Fi access. The hotel will also include 990 square feet of meeting space.