CHICAGO — DiamondRock Hospitality Co. has agreed to acquire a $69 million senior mortgage loan, which is secured by the Allerton Hotel in downtown Chicago. Located at 701 N. Michigan Ave., the historic 443-room hotel was built in 1924. The note will be acquired from the current holders at a discount to par value. Upon completion of the acquisition, DiamondRock plans to pursue the foreclosure action against the hotel that was recently filed in the Cook County, Ill., Circuit Court. Once the foreclosure proceedings are complete, DiamondRock expects to own fee title to the hotel. The transaction is expected to close within the next 30 days.
GRAND ISLAND, NEB. — Grand Island Inn and Suites has reopened as Best Western Grand Island Inn and Suites to reflect its recent brand aligned with Best Western International. Located at 2707 S. Locust St. in Grand Island, the hotel offers 80 guestrooms, including 16 suites. Hotel amenities include an indoor heated swimming pool and whirlpool, an outdoor patio, a state-of-the-art fitness center, guest laundry and a complimentary full breakfast. Guestrooms feature microwaves, mini-refrigerators, LCD televisions and Wi-Fi Internet access. South Pointe Development owns the property.
NEW YORK CITY — The grand opening has been for the Sheraton Brooklyn in New York City. The 25-story hotel features 321 guestrooms, including 21 suites. Amenities inluding a rooftop lounge, a fitness center with a solarium and indoor swimming pool, a full-service restaurant and lounge, and 4,300 square feet of meeting space. The hotel's owner is The Lam Group. The project marks the first full-service hotel to open in Brooklyn since 1998 and is the first of two Sheraton hotels scheduled to open in New York City this year.
CHICAGO — Magellan Development Group, the developer of Aqua, has inked a deal with Minneapolis-based Carlson Hotels to bring a Radisson Blu hotel to the Lakeshore East tower. Scheduled to open in fall 2011, the $125 million, 300,000-square-foot Radisson Blu will offer 334 guest rooms, a 12,500-square-foot ballroom, 27,000 square feet of meeting space and a 125-seat restaurant and bar. Additionally, guests will have access to the amenity center and fitness package of Aqua tower. The hotel will occupy the first 18 floors and will have a separate entrance from the residential portion of the tower. Aqua is located at 225 N. Columbus Dr.
BAYTOWN, TEXAS — Arch-Con Construction has completed construction of a Candlewood Suites for Palms LLC. The 61,000-square-foot, 96-room extended-stay hotel is located at 1020 Maxey Drive in Baytown. The hotel offers amenities such as a business center, a laundry room and a gazebo, and each room comes equipped with a kitchenette complete with a refrigerator, a microwave and a dishwasher.
WHITE PLAINS, N.Y., AND ALTOONA AND WASHINGTON, PA. — Chatham Lodging Trust has entered into an agreement to acquire a four-property hotel portfolio for $61 million. The properties include the 133-room Residence Inn by Marriott located in White Plains, the 105-room Courtyard by Marriott located in Altoona and the 86-room Springhill Suites by Marriott located in Washington. The fourth hotel is a Hampton Inn & Suites located in Houston. The deal will include the assumption of $12 million in debt. The deal is expected to close within 4 weeks.
HILLSBORO, ORE. — PKF Capital Seattle has arranged the sale of the 106-room Springhill Suites by Marriott in Hillsboro. Terms of the deal regarding the suburban Portland property, which was built in 2004, were not disclosed. PKF Capital’s Chris Burdett and Matthew Behrens represented the seller, an Oregon-based hotel developer, in the transaction; the buyer was a joint venture between Watermark Capital Partners LLC and Montclair Hotel Investors.
D'IBERVILLE, MISS. — Encore Hospitality has opened a 125-room Courtyard by Marriott in the 150-acre Lakeview Village in D'Iberville. The hotel includes a restaurant, a lounge, an indoor pool and spa, an exercise room and a business center. Pineapple Management Services oversees day-to-day operations of the property.
NEW YORK CITY — Cushman & Wakefield Sonnenblick Goldman (CWSG) has arranged the $212 million refinancing of a hotel portfolio controlled by Irving-based FelCor Lodging Trust. The portfolio contains nine hotels totaling approximately 2,500 rooms. Five of the hotels fly the Embassy Suites flag and the other four are Sheraton hotels. CWSG's Mark Gordon, Jared Kelso, Alison Tan and Ernest Lee secured the loan, which carries a floating interest rate. The lender's name was not released.
CHATTANOOGA, TENN. — General Electric Capital Corp. has sold a 57-room Chattanooga Comfort Inn to Dayton, Tenn.-based Hitten Hospitality for an undisclosed price. The two-story hotel is located near the University of Tennessee at Chattanooga. David Mumford, Steve Kirby and Burton Brooks of Mumford Co. brokered the sale.