Blackstone Acquires 15-Hotel Portfolio from Pinnacle Hotel Management for $203 million
July 16, 2015 12:06pm
ATLANTA, July 16, 2015—Hunter Hotel Advisors announced today that it represented Pinnacle Hotel Management (PHM) in the sale of a 15-hotel, select-service portfolio comprised of Marriott- and Hilton-branded hotels for $203 million to the Blackstone Group. Nine of the hotel transactions already have closed, with the remaining six scheduled to close in November. Hunter’s Washington, D.C., and Atlanta offices worked together on the transaction, led by Teague Hunter, president, Mark Morris, senior vice president and Kyle Stevenson, senior vice president.
“At this point in the cycle, premium, select-service portfolios are scarce, allowing Pinnacle to take advantage of prices hovering around all-time highs,” said Hunter. “Nine months in the making, this complex transaction served the future growth plans of both parties.”
The 15 hotels are concentrated in dynamic growth markets along the Eastern Seaboard throughout New England, the Mid-Atlantic states, Fla., and Calif.
“The sale of this portfolio allows us to recycle capital while retaining long-term management agreements,” said Ron Franklin, PHM president/principal.
“We will use the proceeds to reinvest in new assets that can benefit from our ability to add value through investment, repositioning and strong management. We look forward to expanding on our relationship with Blackstone,” said Steve Fairbanks, PHM principal and CIO.
“Industry forecasts remain positive for the next several years, creating unique opportunities for both buyers and sellers,” said Morris. “We were pleased to help both the buyer and the seller execute on their long-term goals. Creativity in deal-making and the ability to move quickly are the key elements in today’s hotel marketplace.”
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