PHILADELPHIA — Philadelphia-based Hersha Hospitality Trust has definitively agreed to sell 18 properties to an affiliate of Starwood Capital Group for approximately $155 million, including outstanding mortgage debt. The 18 hotels yielded an approximate 8.4 percent cap rate. Upon the sale, Hersha plans to generate approximately $54 million in net proceeds, reduce its consolidated mortgage debt by approximately $61.5 million and reduce its unconsolidated mortgage debt by approximately $18.3 million. The deal is expected to close by the end of the year.
NEW ROCHELLE, N.Y. — Chatham Lodging Trust has completed the $15.8 million non-recourse first mortgage financing for the 124-room Residence Inn by Marriott in New Rochelle. Regions Bank provided the 10-year loan with a 5.75 percent fixed interest rate and a 25-year amortization schedule. Sonnenblick-Eichner Co. of Beverly Hills, Calif., arranged the financing with Regions. Proceeds from Chatham’s loan will go to repaying outstanding borrowings and general business purposes under Chatham’s secured revolving credit facility.
GRAPEVINE — Holliday Fenoglio Fowler (HFF) has arranged $43 million in financing for Hilton DFW Lakes, a 395-room hotel and conference center comprised of two nine-story towers at 1800 Hwy. 26 E. in Grapevine. A joint venture between Somera Capital Management and affiliates of Zelman Development Co. and Quorum Hotels & Resorts received the financing through Cornerstone Real Estate Advisers. HFF’s John Bourret, Dan Peek and Paul Brindley represented the joint venture, while Tom Cross represented Cornerstone in house. The hotel and conference center features 60,000 square feet of meeting space, a 14,400-square-foot exhibition hall, a private lake, an indoor and outdoor pool, horseback riding, four restaurants and basketball, volleyball and tennis courts.
NEW YORK CITY — A joint venture between The Albanese Organization and The Buccini/Polin Group of Washington, D.C., has purchased a parking lot at 312-318 W. 37th St. in Manhattan from the Wenner and Larkin families for $20.8 million. The joint venture is expected to construct a 300-room hotel on the site, which is in Manhattan’s Garment District. Eastern Consolidated’s David Schechtman represented the families and procured the buyers.
SAN FRANCISCO – The Edwardian San Francisco Hotel has been sold for $4,187,500. The 28-room boutique hotel was built in 1913 and is centrally located near San Francisco’s City Hall, Castro District, Union Square and Twitter’s headquarters. It was recently renovated in 2008. The sale was brokered by Eric Gunderson of Cassidy Turley BT Commercial’s Hospitality Group.
KISSIMMEE, FLA. — The 475-room Best Western Lakeside Hotel, located at 7769 W. Irlo Bronson Hwy. in Kissimmee, will undergo a multi-million dollar renovation to become the Maingate Lakeside Resort, an independent hotel. Richfield Hospitality will oversee the renovations, which will include upgrades to hotel rooms and public spaces. Hotel amenities include five pools, exercise facilities, arcade and on-site miniature golf course.
LEHIGHTON, PA. — Omega Hospitality has purchased a 78-room Hampton Inn Hotel by Hilton location for $4 million. The hotel is located at 877 Interchange Rd. in Lehighton and was in foreclosure at the time of the transaction. The hotel features an indoor pool, a fitness center and a whirlpool. DelShah Capital purchased the distressed asset’s mortgage note and sold the asset to Omega.
KINSTON, N.C. — The Mumford Co. has negotiated the sale of the 122-unit Hampton Inn in Kinston to LRP Hotels of Carolina. The facility will undergo extensive renovations and continue to operate as a Hampton Inn. Ed James of Mumford Co.'s Newport News, Va., office and Steve Kirby of the firm's Atlanta office represented Neuse Hospitality, the seller, in the transaction.
ATLANTA — Noble Investment Group has purchased the 160-room Residence Inn Midtown Atlanta, located on Peachtree Road in Atlanta, in an off-market transaction. The buyer will complete renovations of public areas and guest rooms.
NEW YORK CITY — Marriott International, Inc. and Granite Broadway Development have signed a franchise agreement to develop New York City’s tallest hotel — the Courtyard and Residence Inn Manhattan/Central Park. The 68-story development will house two hotels: Courtyard’s 378-room hotel and Residence Inn’s 261-room hotel. Designed by architect Nobutaka Ashihara, the new hotel building will rise 752 feet, making it the tallest stand-alone hotel building without office or residential space in New York City. The hotels will share a main entrance and a fitness center on the 34th floor, but Courtyard guests will stay on floors six through 32 and Residence Inn guests will stay on floors 36 through 64. There will be a restaurant on the second floor and a lounge and terrace with outdoor seating on the fifth floor. The project is slated for a late 2013 opening and will be managed by Interstate Hotels and Resorts.