Eagle Shareholders Approve Sale for $680M

COVINGTON, KY-The common shareholders of Eagle Hospitality Properties Trust have approved a $680-million buy-out by AP Aimcap, made up of Apollo Real Estate Investment Fund V LP, Aimbridge Hospitality LP and JF Capital Advisors. With the approval, and subject to other conditions, the transaction is expected to close Aug. 15, said Eagle officials in a statement today. Raymond Martz, CFO for Eagle, did not return a call for comment, and Lee Neibart, senior partner at Apollo, could not be reached.

Eagle owns 13 full-service and all-suite hotels, in 3,516 rooms in Arizona, California, Colorado, Florida, New York, Kentucky, Ohio, Illinois and Massachusetts. The joint venture is buying the locally based company for $13.35 per share and unit in cash, plus debt payments, and about $100 million for preferred stock. The JV will pay about $315 million for the 23.6 million shares, and will also take on about $265 million in debt.

Martz told GlobeSt.com in an earlier interview that SEC requirements must still be met for the deal, and brands such as Hilton, Marriott and Hyatt can refranchise with the JV. Eagle’s stock was trading at $13.21 at press time, having started the week trading at less than $13 per share.