NEW YORK CITY–AWH Partners has placed under contract eight Embassy Suites hotels across the nation and will close on the transaction in January 2014. The seller was Windsor Capital Group, an AWH spokeswoman confirms.
The buyer would not disclose the price but an industry source close to the deal tells GlobeSt.com the sale was made for close to $170 million. AWH confirms to GlobeSt.com that it was represented in the transaction by Jones Lang LaSalle. The brokerage concern did not respond to a request for comment by press time.
AWH now owns Embassy Suites Seattle–Bellevue in Bellevue, WA; Embassy Suites Seattle–North/Lynnwood in Lynnwood, WA; Embassy Suites Portland–Washington Square in Tigrad, OR; Embassy Suites Cincinnati–Northeast (Blue Ash) in Blue Ash, OH; Embassy Suites Colorado Springs-Colorado Springs, CO; Embassy Suites Denver–Southeast in Denver, CO; El Paso Suites Hotel (to regain Embassy Suites flag)–El Paso, TX and
Embassy Suites Detroit–Livonia/Novi in Livonia, Mich.
The transaction involved AWH Partners working through a complicated bankruptcy process involving a quick, all-cash, no-contingency closing, the firm reports. The ownership group will invest more than $50 million in physical upgrades to substantially reposition the portfolio over the next two years.
“This portfolio of well-located and premium-branded assets, with multiple parallel sales processes and a complicated bankruptcy, attracted the most sophisticated and well-capitalized opportunistic investors,” says Chad Cooley, principal of AWH Partners. “Given the multi-dimensional nature of the diligence required for the investment, AWH gained an advantage by moving very quickly.”
Adds principal Jon Rosenfeld, “This portfolio represents an opportunity for AWH to leverage its core strengths of acquiring, operating and redeveloping undercapitalized assets to generate out-sized returns.”
The purchase significantly raises AWH’s stake in the hotel industry, notes another principal, Russ Flicker. “The acquisition of this portfolio marks a banner year for AWH and brings our investment in hotels to more than $400 million and 3,700 keys since 2011. We are very excited about the opportunities for growth in 2014 in hospitality and beyond.”
Spire Hospitality, the hotel management arm of AWH Partners, will manage the eight hotels while AWH‘s development division will oversee renovations.