Monarch Alternative Capital pays $360m for 10 U.S. hotels

Monarch Alternative Capital, an investment firm with approximately $9 billion of assets under management, has acquired 10 full-service hospitality real estate assets located in four states in the United States for a total consideration of $360 million.

The properties were sold by Eagle Hospitality Real Estate Investment Trust as part of its bankruptcy process. Monarch initially assisted Eagle Hospitality during the bankruptcy process in early 2021 by providing financing in the form of a $100 million debtor-in-possession loan to help fund ongoing expenses related to the hotels and the bankruptcy case. In March, Monarch was also named as the stalking horse bidder for the 15 properties Eagle looked to sell, providing a floor bid for the Section 363 sale process. Following the auction, Monarch emerged as the ultimate buyer for 10 properties.

The portfolio consists of 10 full-service hotels and resorts located in California, Colorado, Connecticut and Florida. The majo