Three Firms JV, Acquire Six Hotel Portfolio

NEW YORK CITY-GoldenTree InSite Partners, Aimbridge Hospitality and JF Capital Advisors have acquired six full-service hotels containing over 1,000 rooms. All of the properties are located within prime suburban neighborhoods of major metropolitan areas. A source close to the deal tells GlobeSt.com that the selling price is not being disclosed at this time.

Two of the hotels are located outside of Chicago. The others are located outside of Charlotte, Milwaukee, Kansas City and Detroit. This is the second portfolio of hotels the three firms have acquired together during the past year. Lehman Brothers provided the debt financing.

Four of the hotels, located in Schaumburg, IL; Wood Dale, IL; Charlotte, NC; and Brookfield, WI, were recently converted to Doubletree. The other two, located in Overland Park, KS and Novi, MI, are Wyndham Garden Hotels.

“We continue to see very good relative value in transitional hotels,” says Tom Shapiro, president of New York City-based GoldenTree InSite Partners. “We see great opportunity in this portfolio. We believe we can move income substantially through top-line growth, expense controls and capital investment.”

These six assets were part of the eight-hotel portfolio that launched Aimbridge Hospitality into the hotel management arena in 2003. “All of the hotels have benefited from significant capital investment and are still experiencing considerable growth in both ADR and occupancy as a result,” says Dave Johnson, president and CEO of Aimbridge Hospitality. “We are excited that through this acquisition we are also able to extend our role as manager of these great assets that helped start our company four years ago.”

Jonathan Falik, CEO of JF Capital Advisors, notes: “We are planning to harvest the benefits of the prior owner’s extensive capital improvement program as well as the recent conversion of several hotels to the Doubletree flag. Our partnership has also allocated several million dollars for further upgrades to the properties.”