Colony Capital has completed the final sale and assignment, as applicable, of six hospitality portfolios to Highgate and an affiliate of Cerberus Capital Management.
Tom Wagner, head of North American real estate at Cerberus, said, “This transaction provided us with the opportunity to invest in the recovery of the hospitality sector following an unprecedented market dislocation. Together, Cerberus and Highgate are committed to using our combined financial and operating expertise to help revitalize these hotel portfolios for the benefit of guests, employees, and the communities they serve.”
The transaction concludes Colony Capital’s previously announced exit from the hospitality business. Consistent with the original agreement, the transaction resulted in aggregate gross proceeds to the company of $67.5 million and a reduction of consolidated investment-level debt of $2.7 billion, reflecting the assumption of underlying mortgage debt and other liabilities by Highg
