Monarch Alternative Capital acquires ten hotel properties in bankruptcy process

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NEW YORK and LONDON, June 25, 2021 / PRNewswire / – Monarch Alternative Capital LP, a leading investment firm with approximately $ 9 billion assets under management, today announced the purchase of ten full-service hotel real estate assets located in four states of the United States for full consideration of $ 360 million. The properties were sold by Eagle Hospitality Real Estate Investment Trust as part of its bankruptcy process.

The Eagle Hospitality transaction demonstrates Monarch’s ability to leverage its experience in financial restructurings and complex processes to invest in strong assets poised to benefit from a recovery in the leisure and business travel market. Monarch initially assisted Eagle Hospitality during the bankruptcy process in early 2021 by providing funding in the form of a $ 100 million Debtor-in-Operator loan to help fund day-to-day hotel and bankruptcy expenses. In March, Monarch was also named the bidder for the fifteen properties that Eagle sought to sell, providing a floor bid for the Section 363 sale process. Following the auction, Monarch became the ultimate buyer. for ten properties.

The portfolio consists of ten full-service hotels and resorts located in California, Colorado, Connecticut, and Florida. The majority of properties are located in California and Florida, emphasizing proximity to leisure destinations accessible by car, including Disneyland and Disney World, and accessibility to convention centers with heavy traffic. Monarch believes that hotel properties will see an improvement in their operating performance as a result of the continued recovery in leisure and business travel. In addition, Monarch’s continued investment and improved property management aims to put hotels more on the path to growth.

Ian glastein, Managing Director of Monarch, said: “The global Eagle Hospitality transaction illustrates the value of our extensive debt and equity investment capabilities to target attractive opportunities in dislocated industries. Our ability to provide speed and certainty of execution in complex situations is highly appreciated by our partners and counterparties. ”

Monarch has partnered with Hersha Hospitality Management, a leading hotel management, investment and development company with approximately 150 hotels in 23 states, to help with operations and portfolio management.

About Monarch Capital Alternative LP
Monarch Alternative Capital LP is a global investment firm founded in 2002 with approximately $ 9 billion in assets under management. Monarch primarily focuses on opportunistic and distressed situations in the areas of corporate debt, real estate, special situations and other market segments. Monarch relies on the skills and experience of its employees in its offices new York and London. For more information, please visit www.monarchlp.com.

About Hersha Hospitality Management (HHM)
Hersha Hospitality Management manages a highly diverse portfolio of approximately 150 properties from coast to coast, comprising one-third of lifestyle and independent hotels, one-third of resorts and full-service resorts, and one-third of city ​​hotels and selected services. HHM’s teams use proprietary data and processes, along with a relentless focus on delivering results, to maintain its edge and market position for a very diverse group of institutional and long-term owners. For more information, please visit www.hhmhospitality.com.

Media contact:
Jeremy Fielding
Kekst CNC
[email protected]

SOURCE Monarch Capital Alternative LP

Related links

http://www.monarchlp.com



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