Goodman Borrows $402M for Foreign Hotel Portfolio

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SEATTLE-Goodman Hospitality Investments, the hotel arm of the locally based Goodman family, is busy renovating three Fairmont-branded international hotels it acquired last month. Two of the hotels are located in Acapulco, Mexico and the other is in Hamilton, Bermuda. The purchase price wasn’t immediately available, but Munich-based Hypo Real Estate Capital Corp. said Tuesday it provided $402 million in acquisition and repositioning loans in support of the investment.

The two Acapulco properties are the Fairmont Acapulco Princess and the Fairmont Pierre Marques, both located in the Diamante section of the Pacific coast city. The Fairmont Acapulco Princess is a 1,017-room luxury resort spread over 480 acres of beachfront property, with full resort amenities including a 14,000-sf spa, an 18-hole golf course and extensive meeting and convention facilities. The Pierre Marques is a boutique, full-service, luxury resort with 335 rooms located in villas, bungalows and low-rise buildings amidst tropical gardens and an 18-hole golf course.

The Bermuda property is the Fairmont Hamilton Princess, a 410-room full service luxury hotel located on the edge of Hamilton Harbor within the city center of Hamilton, the capital of Bermuda. The “Pink Palace” was originally built in 1884 and is a historic icon of Bermuda hospitality for both business and leisure travelers. All three hotels will continue to be run by Fairmont Hotels & Resorts.

Goodman Hospitality Investments president/chief executive Laurent Poole could not be reached for comment. According to local sources, $20 million will be spent sprucing up the Bermuda property and $50 million will be spent on renovations at the two Acapulco properties, including $20 million that will be spent renovating the two golf courses.

At the Bermuda property, plans call for updating 113 rooms in the Bay wing as well as common areas such as the lobby, fitness facilities and pool. Scheduled to take 18 to 24 months, the work comes on the heels of a $30-million investment in the property by Fairmont Hotels & Resorts. “Bermuda is experiencing a strong growth in tourism,” Poole said in a prepared statement.

The $30-million repositioning program for the Acapulco properties includes complete guest room renovation; the addition of a multifunctional conference center; expansion of the Willow Stream Spa; and refurbishments to restaurants and shops. An additional $20 million has been designated for the redevelopment of two golf courses and the creation of an exclusive golf and beach club slated for construction in 12 to 18 months.

The Goodman family operates Goodman Investment Group, which includes Goodman Hospitality Investments, Goodman Real Estate, Pinnacle Realty and Triad Development. John Goodman is the company’s founder and serves as its chairman. The companies’ portfolio has a market value of approximately $5 billion and spans the spectrum of risk-adjusted investments to include hotels and resorts, multifamily, office, retail, real estate development, and property management.