March 30, 2012 - Leisure Real Estate
Advisors,
LLC has closed the sale of two more bank owned hotel assets, just two
weeks
after the group announced the sale of three other bank owned assets.
“We have
been placed in the fortunate position by a good number of lenders to
dispose of
their hotel assets”, stated Brent A. Jaynes, co-founder and managing
partner.
“Over the past two years, we have become known for our ability to deal
with
these assets. Like everyone else, though, we are hopeful that these
distressed
assets a purged from the system, sooner than later”
The first transaction involved the Highland Hotel in Great Bend, KS.
Richard
Hagerman, Senior Investment Advisor out of the Kansas City office
represented
the Seller, KINBAN, Inc, a REO holding company of a regional bank based
in
Great Bend. The 197 unit full service hotel is a former Holiday Inn
Holidome
located next to a regional convention center. “These older Holidomes
can
sometimes be a challenge to sell. However, the location of the hotel,
its
revenue to price ratio, and the proximity to the convention center all
contributed to this closing”, said Mr. Hagerman. As with many markets,
Great
Bend was not immune to the recession and the bank was forced to
re-claim the
hotel in early 2011. The buyer, Ambika Enterprises, is based in British
Columbia and saw the opportunity to take advantage of a discounted and
distressed situation. Ambika will operate the hotel as an independent
for the
time being and then decide if they want to engage a franchise.
The second REO transaction
took place in Colfax, IA, a 60 unit Comfort Inn built in 2003. David
Jones,
Senior Associate in the Kansas City office represented the Seller in
the
transaction. Colfax Valley Hotel, LLC, was the Seller, which was a
single
purpose REO entity for a Mason City, IA bank and the Buyer was Nana
Corporation
out of Omaha, NE. Although the hotel was fairly new, Choice Hotels
would not
renew the Comfort Inn flag due to the two story nature of the hotel.
“The fact
that the flag would not be retained is always a problem, especially
when you
lose a well known flag, such as Comfort Inn”, commented Mr. Jones.
“Many
aspects of the deal are complicated by the flag issue, including
financing.
However, the buyer was able to bring his own lender to the table and
get the deal
done.” The Buyer will operate the hotel, initially as an independent,
then
evaluate his options for a franchise.
Leisure Real Estate Advisors, LLC
is based in metro Kansas City, with offices
in Lincoln, NE and Jefferson City, MO, and has a specialty
concentration in the
marketing and sale of hotels. Over its 13 year existence, the company
has
become one of the premier hotel brokerage firms in the central US and
has been
recognized by
Hotel Business
and
Hotel Motel Management
magazines for its performance.
For more
information on these
sales or to discuss the investment market in general, please direct
your
questions any of the brokers or to: