News for the Hospitality Executive
May 11, 2011—Thayer
, one of the
nation’s leading private hotel investment companies, today announced
company completed several major initiatives in the first four months of
2011. The company acquired two upscale full-service hotels—the
JW Marriott in San Francisco and the 304-room Hotel Palomar in
completed a $128 million corporate recapitalization of Interstate
Resorts, a global hotel management company Thayer owns in a 50/50 joint
with Jin Jiang Hotels, China’s largest lodging company.
“We expect 2011 to be one of our most active years in some time,” said Bruce Wiles, Thayer’s chief operating officer. “We are taking full advantage of our ability to reconfigure and reposition hotels to increase investor returns.”
Thayer recently acquired the JW Marriott San Francisco Union Square from Ashford Hospitality Trust for $96 million. Built in 1987, the hotel recently underwent a $22 million renovation and is in excellent physical condition. “The hotel real estate market continues to gain traction, and we are seeing a growing number of acquisition opportunities,” said Jin Lee, managing director and CIO of Thayer Lodging Group.
Thayer recently completed the acquisition of the Hotel Palomar, located at 866 West Peachtree Street in Midtown Atlanta, from WP Partners, a private investment group. Thayer has rebranded the hotel as a Renaissance Hotel, within the Marriott International lifestyle collection of brands. As in the San Francisco acquisition, Wells Fargo provided a senior mortgage to facilitate the transaction.
In April, a wholly owned subsidiary of Thayer and Jin Jiang Hotels, Interstate Hotels and Resorts (IHR), closed on a $128 million senior secured credit facility provided by Industrial and Commercial Bank of China (ICBC), the world’s largest bank by market capitalization. Proceeds from the refinance were used to retire an existing syndicated credit facility, as well as a first mortgage debt secured by one of Interstate’s wholly-owned hotels. “The recapitalization of our management joint venture at more favorable rates will result in significant interest savings and further increases our financial flexibility and investment returns,” said George Dabney, managing director, treasury for Thayer. IHR is the U.S.’s leading independent hotel and resort management company.
Thayer Lodging Group, based in Annapolis, Maryland, is a privately held hotel investment company that was formed in 1991 by Frederic V. Malek and Leland Pillsbury. Thayer has a lengthy and successful track record that spans multiple investment cycles. Thayer is currently investing with its fifth private equity fund. For more information about Thayer, visit the company’s web site, www.thayerlodging.com.
Lodging Group Acquires 304-room Hotel Palomar Atlanta-Midtown in
Atlanta, Georgia and Plans to Rebrand Property as The Renaissance
Atlanta Midtown Hotel / March 2011
Hospitality Completes Sale of JW Marriott San Francisco for $96.0
Million to an Affiliate of Thayer Lodging Group / Febraury 2011
Lodging Group Closes Fifth Investment Fund with $280 million in Equity
Commitments; Expects to Acquire $600 to $700 million in Hotels /
|Thayer Lodging Group Names Jin Lee Managing Director and Chief Investment Officer / February 2009|
|Thayer Lodging Group Acquires Complex of Three Marriott-branded Hotels at Miami International Airport for for $57.5 million; Plans $65 Million Complete Makeover, Including Building New Courtyard Tower, New Residence Inn Hotel / June 2007|