GREENWICH, CONN. — Greenwich-based Wheelock Street Capital has acquired 15 hotels in two separate, unrelated transactions totaling $221 million.
Wheelock acquired a 12-hotel portfolio from affiliates of Inland American Real Estate Trust for approximately $116 million in a deal that closed last Thursday. The next day, Wheelock closed on the acquisition of three full-service hotels from Sunstone Hotel Investors (NYSE:SHO) for approximately $105 million.
“We are delighted to be adding this collection of high-quality hotels to our portfolio,” says Jonathan Paul, managing partner at Wheelock Street Capital.
For the 12-property Inland transaction, GE Capital, Franchise Finance provided newly originated senior financing. The rest was financed through a combination of assumed CMBS loans. CBRE Group and Maxim Hotel Brokerage represented Inland in the transaction.
The 12-property portfolio is located primarily in the Southeast with other hotels located in Arizona, Texas and Illinois. Ten of the 12 hotels are branded under long-term license agreements with affiliates of Hilton and Marriott International. The other two hotels are licensed by affiliates of Choice Hotels and Intercontinental Hotels Group. McKibbon Hotel Management and the North Central Group will manage the 12-property portfolio.
For the three-property portfolio sold by Sunstone, Wheelock assumed the hotels’ existing CMBS financing. Hodges Ward Elliott represented Sunstone in the transaction.
The portfolio includes the 257-room San Diego Hilton Del Mar, the 229-room Minneapolis DoubleTree Guest Suites and the 350-room Detroit Marriott Troy. Sage Hospitality will manage the Hilton Del Mar and the Minneapolis DoubleTree, while Marriott will continue to manage the Detroit Marriott Troy.
Wheelock plans to complete Hilton Del Mar’s ongoing renovation, as well as make improvements to the other hotels in both portfolios.
“Wheelock will invest in additional capital upgrades across both portfolios to position the assets to benefit from a favorable fundamental backdrop and high-quality brand affiliations,” says Paul.
Sunstone’s stock price closed at $11.59 per share on Monday, up from trading at $5.61 per share this time last year.
— John Nelson