MGM sells Aria and Vdara; more operations …


MGM Resorts has entered into an agreement to buy CityCenter in Las Vegas and sell the Aria and Vdara hotels on the site. Here is an overview of this transaction and more.

MGM Resorts purchases CityCenter; sell Aria and Vdara
MGM Resorts International has entered into a definitive agreement to purchase Infinity World Development Corp’s 50% stake in CityCenter Holdings LLC for $ 2.125 billion. The purchase price represents an implied valuation of $ 5.8 billion based on net debt of $ 1.5 billion, taking into account the recently completed sale of a two-acre parcel. The deal will make MGM Resorts the 100% owner of CityCenter on the Las Vegas Strip, which includes Aria Resort & Casino and Vdara Hotel and Spa.

MGM Resorts has also entered into a definitive agreement with Blackstone to monetize the Aria and Vdara real estate assets, pending the completion of the share purchase agreement between MGM Resorts and Infinity World. Under the deal, funds managed by Blackstone will acquire the Aria and Vdara real estate for $ 3.89 billion in cash, which is a multiple of 18.1 times the rent. Following the acquisition, both properties will be leased to MGM Resorts for an initial annual rent of $ 215 million.

Regarding the real estate deal with Blackstone, Bill Hornbuckle, CEO / President of MGM Resorts, said: “This transaction demonstrates the unprecedented value of our real estate assets and a testament to Aria and Vdara’s status as prime destinations on the Las Vegas Strip. . We plan to continue to implement our asset relief strategy and use the proceeds from our real estate transactions to improve our financial flexibility and secure new growth opportunities. “

Tyler Henritze, US Acquisitions Manager America at Blackstone Real Estate, said: “This transaction reflects our strong belief in Las Vegas and our strong partnership with MGM Resorts. CityCenter is a premier resort and a complementary addition to our portfolio of high quality assets on the Strip.

Transactions are expected to close in the third quarter, subject to certain closing conditions. The closing of the Infinity World transaction is independent of the closing of the transaction with Blackstone.

PJT Partners is acting as exclusive financial advisor and Weil, Gotshal & Manges LLP is acting as legal advisor to MGM Resorts on both transactions. Moelis & Company LLC is the exclusive financial advisor and Paul Hastings LLP is legal advisor to Infinity World. Simpson Thacher & Bartlett LLP is acting as legal counsel to Blackstone.

Portfolio of nine properties sold for $ 225 million
Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, has negotiated the sale of nine hotel properties in eight states, totaling $ 1.55 million. square feet with a total value of approximately $ 225 million, as part of a previously announced alliance.

The buyer, Lockwood Development Partners, plans to reallocate these properties and create multidimensional assets that will help stimulate the economy and provide essential resources and opportunities to veterans and senior communities. The reallocated multi-faceted assets will include a renowned, eco-friendly and sustainable hotel operation, affordable multi-family housing and ‘ghost kitchens’, where local vendors partner with Uber Eats to do business without the costs of upkeep. ‘a traditional restaurant. . In conjunction with the Veterans Mission Act, the properties will also serve as a resource for veterans to receive permanent housing, physical and mental assistance, and other support programs through SarahCare, an organization dedicated to provision of resources to the elderly.

The properties are:

Crowne Plaza, Memphis, Tennessee, 319 rooms
Crowne Plaza, Austin, Texas, 293 rooms
Clarion Hotel, Orlando International Airport, 335 rooms
Crowne Plaza, Houston, 243 rooms
Crowne Plaza, Dayton, Ohio, 283 rooms
Crowne Plaza, Reading, Pennsylvania, 259 rooms
Garden Plaza, Marietta, Georgia, 218 rooms
Former Marriott, Jackson, MS, 303 rooms
Crowne Plaza, Tulsa, Ok, 286 rooms

Marcus & Millichap’s official brokers in Florida, Georgia, Mississippi, Ohio, Oklahoma, Pennsylvania, Tennessee and Texas are Ryan Nee, John Leonard, Mickey Davis, Michael Glass, Mark McCoy, Sean Beuche, Jody McKibben and Timothy Speck respectively.

Host Hotels acquires Baker’s Cay Resort Key Largo for $ 200 million
Host Hotels & Resorts Inc. acquired the fee simple interest in the 200-room Baker’s Cay Resort Key Largo, Curio Collection for approximately $ 200 million in cash.

The purchase price represents an estimated capitalization rate of 6.2% and an EBITDA multiple of 14.5x based on the 2021 real estate forecast.

Located on 13 acres of oceanfront land on the Gulf Coast of Key Largo, the property offers guests the benefits of a Florida Keys resort 105 miles from Miami International Airport. The property offers 26,000 square feet of meeting space, including a 6,900 square feet. event lawn and four food and beverage outlets. Facilities include a private beach suitable for swimming, spa, salon, dock, fitness center and two outdoor swimming pools.

DiamondRock completes the sale of the Lexington Hotel in New York
DiamondRock Hospitality Company has completed the sale of the 725-room Lexington Hotel in New York City for $ 185.3 million.

Including the company’s forecast investments, the sale price represents a multiple of 14.2x on 2019 hotel EBITDA and a capitalization rate of 5.4% on 2019 hotel net operating income. The company intends redeploy the net proceeds from the sale to acquire high-growth experiential and urban lifestyle resort hotels aligned with its investment strategy.

DoubleTree by Hilton Hotel Anaheim — Orange County acquired
AWH Partners LLC and funds managed by a subsidiary of Apollo Global Management Inc. have acquired DoubleTree by Hilton Hotel Anaheim — Orange County. Following the agreement, Spire Hospitality took over management of the property from Hilton. Financial terms of the transaction were not disclosed.

The 461-key property features a fitness center, room service, business center, outdoor pool, and tennis court. There are several dining options on the property, including 1Hundred, a lobby bar with sports entertainment on the big screen; KoffeeKITCHEN, an urban kitchen serving local produce and Starbucks coffee; and the Trofi Restaurant & Bar, which serves fine California cuisine.

The DoubleTree by Hilton Hotel Anaheim — Orange County has 31,982 square feet of indoor and outdoor event space on two floors and 20 meeting rooms in total.

TPG Hotels, Resorts & Marinas acquires Sherburne Inn in Nantucket
TPG Hotels, Resorts & Marinas has acquired the historic Sherburne Inn in downtown Nantucket.

The Sherburne Inn has eight uniquely designed upscale guest rooms. All beds at the property are covered with luxury hand-ironed linens. Each bathroom is stocked with fluffy towels, a suite of luxurious and fully durable Beekman spa products, and a hairdryer. In addition, each room has a cable TV, free WiFi and a personal Keurig coffee machine.

The Sherburne Inn is in addition to the company’s other properties on Nantucket, including The Veranda House, The Regatta Inn, The Chapman House, and Arbor Cottage, which are collectively known as the Nantucket Resort Collection.

Kirkwood Collection adds Seven Gables Inn on Monterey Bay
Kirkwood Collection acquired the Seven Gables Inn on Monterey Bay, expanding its portfolio to six properties.

Seven Gables Inn was built in 1886 as one of a parade of stately Victorian mansions located along the waterfront of the Monterey Peninsula. In 1982, the Flatley family reinvented the mansion into a luxury inn. Over the decades, the Flatleys have acquired adjacent plots of land bringing the hotel to 25 keys, including two cottages made up of multi-bedroom suites, all with unobstructed views of the ocean and the coastal mountain beyond.

Courtyard Atlanta Airport West acquired by Alpental Capital
Alpental Capital, a Denver-based hotel investment group, acquired Courtyard Atlanta Airport West and selected Providence Hospitality Partners to manage the hotel.

The 128-room hotel completed a massive $ 1.6 million room renovation in 2018-19, and Alpental continued with planned capital improvements for the property to further enhance the guest experience. In addition to the newly refurbished rooms, the four-story hotel has an airport shuttle, outdoor swimming pool, bistro and bar, 24-hour fitness center, ‘a 24-hour business center, as well as free Wi-Fi and free parking. The property also offers over 3,000 square feet of meeting space that can accommodate up to 130 people, as well as an executive meeting room.

Hunter Hotel Advisors negotiates sale of Home2 Suites by Hilton Savannah Airport
Led by Mayank Patel, Hunter Hotel Advisors represented BPR Properties in the sale of the Home2 by Hilton Savannah Airport suites in Pooler, Georgia. The buyer was a large private equity group focused on adding high RevPAR assets to its growing select services platform.

The property is close to Savannah / Hilton Head International Airport (SAV) and downtown Savannah.

Shamin Hotels purchases two hotels in Virginia Beach
Shamin Hotels of Chester, Virginia has acquired the 120-room Hampton Inn Virginia Beach Oceanfront North and the 147-room Best Western Sandcastle Hotel, both located on the Virginia Beach Boardwalk.

The newly renovated Hampton Inn is centrally located on the boardwalk next to Neptune Park and the Hilton Virginia Beach Oceanfront, both also owned by Shamin Hotels, while the Best Western is located next to the famous Virginia Beach Pier. With these acquisitions, Shamin Hotels now owns six hotels at the Virginia Beach Oceanfront.

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