The newly renovated hotel was acquired from Chicago-based developer and owner MCZ/Centrum VI Owner LLC. Under the joint venture, MHI will retain a 25% equity position in the property and Carlyle a 75% equity position. A contiguous hotel development site owned by MCZ/Centrum will be leased to the joint venture for four years with an option to purchase the site at any time during the lease.

Financing for the acquisition included a two-year, $57.6-million non-recourse loan from Societe Generale. The loan has three one-year extensions and is interest only with a rate determined by Libor plus 1.94%.

The hotel is located on a barrier island between the Intracoastal Waterway and the Atlantic Ocean. The property includes 12,000 sf of meeting space, a retail food and beverage outlet, an outdoor swimming pool and 300 valet parking spaces. "With its scale, location and value-enhancing potential, the Crowne Plaza Resort Hollywood Beach is a significant acquisition for our company and directly fits our venture objectives with the Carlyle Group," says MHI Hospitality Corp. president and CEO Andrew Sims.

The property had originally been planned as a hotel condominium and MHI had originally planned to acquire the commercial space of the hotel. However, under the purchase agreement, the hotel condominium portion was eliminated.