X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOLLYWOOD, FL-A joint venture of Williamsburg, VA-based MHI Corp. and the Carlyle Group has closed on the $74-million acquisition of the 311-room Crowne Plaza Resort Hollywood Beach.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.