Sage Hospitality & Whitman Peterson Acquire 11 Hotels in Second Portfolio Purchase of Their Venture
February 25, 2014 7:36am
DENVER, Feb. 25, 2014 -- Sage Hospitality, one of the leading hotel investment and management companies in the U.S., announced the purchase of 11 hotels in partnership with Whitman Peterson. This purchase marks the second of a programmatic, highly-focused investment venture between Sage and Whitman Peterson, wherein they plan to acquire a sizable portfolio of select-service hotels in need of high-impact capital, operational, and/or brand improvements.
The first portfolio, purchased in March of 2013, encompassed seven well-branded, but under-capitalized hotels and is in the final stages of renovation. This new transaction adds 11 hotels to the venture – bringing Sage's total hotels under management to 76 nationally. The newly added properties are located in several metropolitan areas strategic to the venture, including Austin, Denver, Indianapolis, and Dallas.
"The properties are geographically diverse and encompass a variety of top tier brands in the Marriott, Hilton, and Hyatt systems," said Michael Everett, Chief Investment Officer for Sage Hospitality. "We see significant upside from capital expenditure and operational improvements, which is perfectly inline with our investment strategy." Everett continued, "With an acquisition price of approximately $70,000/key and an approximately 10 percent cap rate on trailing 12 income – we believe this portfolio offers a unique combination of in-place yield and attractive upside, at a basis after renovation that is well below replacement cost."
"We are thrilled to continue to execute on our joint strategy with Sage," said Wes Whitman, of Whitman Peterson. "We and Sage look forward to working with brokers, owners and the brands to identify similar individual properties and portfolios to acquire."
Tags: sage hospitality,
Founded in 1984 and celebrating 30 years, Sage Hospitality has strategically grown into one of the largest privately held hotel management, investment and development companies in the nation operating a variety of large, full-service hotels and extended stay and select-service properties. Sage Hospitality's comprehensive management portfolio includes major international brands for Marriott, Starwood, Hilton and IHG as well as the independent boutique hotels. Sage Hospitality has further differentiated with the creation of the Sage Restaurant Group, which has created and is managing over nine unique restaurant concepts including the acclaimed Mercat a la Planxa restaurant in Chicago. For more information, please visit www.sagehospitality.com.
Contact: Kate Davis, Sage Hospitality
Sage Hospitality and Host Hotels & Resorts Unveil Plans for the Logan, Philadelphia's Hotel
Host Hotels Selects Sage Hospitality to Manage the 628-key Denver Marriott Tech Center Hotel
Sage Hospitality Appoints Bob Megazzini as General Manager at the 484-room Westin Cleveland Downtown
The 243-suite Residence Inn New York Manhattan/World Trade Center Area Opens
Host Hotels Selects Sage to Manage Philadelphia's Four Seasons Upon Conversion to Independent Hotel
Scott Sloan Named General Manager of Denver, Colorado's 336-key Curtis - a Doubletree by Hilton
Pebblebrook Hotel Trust Acquires the 331-room Nines Hotel in Portland, Oregon for $127 Million
Sage Hospitality Acquires 321-room Marriott Minneapolis Southwest in Minnesota; Renovation Planned
BMC Investments and Sage Hospitality to Co-Develop $60 M Hotel Project in Denver's Old P.O. Building
Michelle Baca Named Senior Sales Manager at Oxford Hotel & Crawford Hotel at Denver Union Station
Sage Hospitality Names Arthur Berg as Senior VP for Premier & Lifestyle and Chief Marketing Officer
Owned by GF Properties & Managed by Sage Hospitality, Springhill Suites Hotel Opens in Oceanside, CA
Sage Hospitality Names Todd Iseri as Area Director of Sales & Marketing
Dave Pease Appointed as General Manager of the 196-key JW Marriott Denver Cherry Creek in Colorado
Jan Lucas Named Regional Vice President of Sage Hospitality's Select Service Division
Sage Hospitality Names Mark Anderson as General Manager of the Westin Cleveland Downtown Hotel in OH
Denver, Colorado's Curtis - a Doubletree by Hilton Launches $5 Million Guest Room & Lobby Renovation
Sage Hospitality Names Lisa Donovan as Chief People Officer
SpringHill Suites Oceanside Downtown in CA Hires Karla Sweeney as Director of Sales and Marketing
Sage Hospitality & Partners Redeveloping Denver's Union Station to Open The Crawford Hotel in Q3 '14
Boston's Hotel Commonwealth to Expand Adding 94 Rooms & an Additional 14K sf of Event Space
Joe Miller Named Corporate Director of Sales for the Select Service Division of Sage Hospitality
Kathleen Maola Named General Manager for CA's SpringHill Suites Oceanside Hotel to Open in Q1 2014
Sage Hospitality Adds Éilan Hotel Resort & Spa in San Antonio, Texas to their Portfolio
Please login or register to post a comment.