News for the Hospitality Executive
BIRMINGHAM, Ala., December 7,
2011—Officials at Hunter
Realty today announced that the firm had brokered the sale of the
150-room Hyatt Place Hotel in Birmingham, Ala. in a complex transaction
included converting the recently opened hotel to the SpringHill Suites
Marriott brand at the time of closing. Teague Hunter, president
Realty, led the team that represented Capmark Financial (seller) in the
the hotel to Ascent Hospitality for $19.25 million.
“Transactions in today’s hotel real estate market often are more complex than they used to be, a trend we expect to continue as lenders bring more hotels to market in the coming months,” said Teague Hunter, president, Hunter Realty. “Both the seller and buyer achieved their investment goals, with the lender receiving the full principal on its original loan, as well as a $3 million tax credit, and the buyer purchasing a hotel with a new flag and attractive financing at below replacement cost. This created the win-win situation we look for in every transaction.”
“Hunter Realty worked closely with us throughout the acquisition process to structure the transaction so that it made economic sense with good financing terms and helped us through the process of obtaining a top Marriott brand,” said John Tampa, president and co-founder, Ascent Hospitality. “We own land immediately across the street but it would take at least 12 to 18 months to build the hotel—and new construction financing is extremely difficult in today’s economy. With a modest investment in converting the hotel to the SpringHill Suites brand, we have a brand new hotel acquired at below replacement cost, in a great location in the heart of downtown Birmingham. We believe it will quickly become the market leader.”
The six-story SpringHill Suites
Birmingham Downtown at
UAB is located at 2024 4th Avenue South, adjacent to the
of Alabama Birmingham, UAB Hospital and the city’s central business and
Located in Dalton, Ga., with additional offices in Indianapolis, Ind., and Winchester, Va., Ascent Hospitality is a vertically integrated hotel development and management company. The company’s current portfolio consists of 26 select services hotels throughout the Midwest, Northeast and Southwest, comprising over 2,500 luxurious rooms in major leisure, business and convention markets across the U.S. For more information, visit http://www.ascent-hospitality.com/.
About Hunter Realty
Hunter Realty, an award-winning firm founded in 1978, has offices in Atlanta, Dallas, Los Angeles, Miami, New York and Washington, D.C. Hunter’s exclusive focus is on hotel investment advisory services. Additional information, including current listings, is available at the company’s website, www.HunterHotels.net, or by contacting the Atlanta office at (770) 916-0300.
Patrick Daly or Jerry Daly (media)
Realty Completes Sale of Hotel Indigo Nashville; Brokered by Teague
Hunter, President, and Brown Kessler, EVP and Former IHG Exec /