Sage, Apollo Sell Hilton Select Portfolio

ATLANTA—A 751-room, four-property Hilton Select Service Portfolio has a new owner. Apollo Global Management and Sage Hospitality sold the assets to Blackstone. Financial terms of the deal were not disclosed.

The hotel portfolio includes three Hilton Garden Inns located in Atlanta, Orlando, and Denver, and a Homewood Suites in San Francisco. The seller has been retained to manage the four properties. Jones Lang LaSalle managing directors Mark Fair and Adam McGaughy, along with vice president Katy Reynolds, represented the seller.

“The Hilton Select Service Portfolio provided an outstanding opportunity to acquire institutional quality assets strategically located in thriving markets with superior brand affiliation,” McGaughy tells GlobeSt.com. “The new ownership will benefit from strong in-place cash flow and exceptional upside potential.”

In 1999, Sage Hospitality developed and co-invested in the Hilton Select Service portfolio of hotels which includes: Hilton Garden Inn Orlando, HGI Atlanta Perimeter Center, HGI Denver South and Homewood Suites SFO Airport. Kelly McCourt, vice president of Marketing at Sage, tells GlobeSt.com the firm will “continue to drive the properties forward seeking optimum results.”

The Hilton Garden Inn, Atlanta, Ga., is an eight-story, 193-guest room/six-suite hotel in Atlanta's Perimeter market. Built in 1999, the hotel completed more than $2.3 million in capital improvements in 2012. The Hilton Garden Inn in Orland is an official on-site hotel for SeaWorld. The eight-story hotel was built in 2001.

The Hilton Garden Inn in Denver is located in the Meridian Business Park, just 20 miles south of Downtown Denver. Built in 1999, the six-story, 157-room hotel completed a $2.3 million capital improvements program in 2011. Finally, Homewood Suites in San Francisco is located less than eight miles south of Downtown San Francisco. Built in 2002, the four-story, 177-suite hotel completed an extensive renovation in 2008 and a renovation to the public areas in 2013.

“To diversify their portfolios we're seeing well-performing select service hotels in core markets peek the investment community's interest,” Fair tells GlobeSt.com. “This portfolio was able to close within 100 days of going to market which is a true testament to the robust upscale select service transaction market.”