Monarch Alternative Capital Pays US$360m for 10 US Hotels
Main Photo: The Four Points San Jose Airport, one of the hotels included in the deal
Date: July 2021
Locations: California, Colorado, Connecticut and Florida, USA
Names: Hotels such as: Holiday Inn Resort Orlando Suites Waterpark, Holiday Inn Denver East Stapleton, Renaissance Denver Stapleton Hotel, Holiday Inn Hotel & Suites Anaheim Disneyland, Holiday Inn & Suites San Mateo, Sheraton Pasadena Hotel, Crowne Plaza Danbury, Westin Sacramento and Embassy Suites Palm Desert.
Number of Keys: TBA
Seller: Singapore-based Eagle Hospitality Real Estate Investment Trust as part of its bankruptcy process
Buyer: Monarch Alternative Capital, an investment firm with approximately $9 billion of assets under management, has acquired 10 full-service hospitality real estate assets located in four states in the United States for a total consideration of $360 million.
The properties were sold by Eagle Hospitality Real Estate Investment Trust as part of its bankruptcy process. Monarch initially assisted Eagle Hospitality during the bankruptcy process in early 2021 by providing financing in the form of a $100 million debtor-in-possession loan to help fund ongoing expenses related to the hotels and the bankruptcy case. In March, Monarch was also named as the stalking horse bidder for the 15 properties Eagle looked to sell, providing a floor bid for the Section 363 sale process. Following the auction, Monarch emerged as the ultimate buyer for 10 properties.
The portfolio consists of 10 full-service hotels and resorts located in California, Colorado, Connecticut and Florida. The majority of the properties are located in California and Florida, with a focus on proximity to drive-to leisure destinations, including Disneyland and Disney World and accessibility to highly trafficked convention centers. Monarch believes the hotel properties will experience operating performance improvement as a result of the ongoing recovery of both leisure and business travel. In addition, continued investment by Monarch and improved management of the properties aims to further put the hotels on a path for growth.
Not included with the properties was Eagle’s control of the Queen Mary, a former ocean liner converted into a hotel in Long Beach, California. The city has warned the iconic tourist attraction may be in danger of sinking.
THPT Comment: We are still seeking info as to which 10 of the 15 hotels previously owned by Eagle are included in this deal.
First Seen: Institutional Real Estate
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