Colony Capital has entered into a definitive agreement to sell six of its hospitality portfolios to Highgate in a deal valued at $2.8 billion, including $67.5 million of gross proceeds on a consolidated basis and the assumption of $2.7 billion in debt. The six portfolios consist of 22,676 rooms across 197 hotel properties.
The transaction is part of Colony's shift to focus on digital infrastructure assets. "We are thrilled to be delivering on our commitment to dispose of non-core assets and harvest positive value for our hospitality business," said Marc Ganzi, CEO of Colony Capital in prepared remarks.
As part of the transaction with Highgate, Colony will transfer five of the six portfolios held in the hospitality segment and an approximately 55% interest in the THL portfolio held in the other equity and debt segment. The sixth portfolio in the hospitality segment, the Inland portfolio, is under receivership and is excluded from the transaction.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
