BIRMINGHAM, Ala., December 7, 2011—Officials at Hunter Realty today announced that the firm had brokered the sale of the former 150-room Hyatt Place Hotel in Birmingham, Ala. in a complex transaction that included converting the recently opened hotel to the SpringHill Suites by Marriott brand at the time of closing.  Teague Hunter, president of Hunter Realty, led the team that represented Capmark Financial (seller) in the sale of 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 4^th Avenue South, adjacent to the University of Alabama Birmingham, UAB Hospital and the city’s central business and financial district.