Three Wall Capital and Guggenheim Investments complete acquisition of extended-stay hotel portfolio
A partnership between Three Wall Capital and Guggenheim Investments has completed the acquisition of an 18-asset extended-stay hotel portfolio.
Clients managed by Guggenheim Investments also provided the mortgage debt for the portfolio acquisition.
“This diverse portfolio, consisting of extended-stay hotels across multiple class segments, provides significant in-place cash flow in strong southeastern growth markets,” said Chris Dewey, JLL Capital Markets managing director, which represented the seller in the transaction. “The hotels have been recently renovated, positioning the portfolio to continue capturing more than its fair share of room night demand in markets that continue to expand.”
The national portfolio includes hotels located in North Carolina, Virginia, Florida, Texas, Tennessee and Georgia, and the assets are affiliated with brands in the Hilton, IHG and Choice systems. The hotels are all well positioned in respective markets and are proximate to dense retail corridors, office parks, hospitals, airports, residential communities and major highway systems.
The acquisition will build on Three Wall’s rapidly expanding portfolio and aligns well with the firm’s extended-stay focus.
Alan Kanders, managing member and founder of Three Wall Capital, said, “The portfolio’s geographic diversity, high-quality physical product, strong in-place cash flow and valuable real estate made it an all-around attractive investment opportunity for us.”
The portfolio includes assets flagged as Homewood Suites, Home2 Suites, Candlewood Suites, Staybridge Suites, Suburban Extended Stay, Mainstay Suites and Sleep Inn. New long-term franchise agreements were secured from all brands.
Three Wall’s portfolio consists of 54 hotels following the close of this acquisition, 46 of which represent extended-stay hotels.
Aimbridge Hospitality, the nation’s largest independent hotel management firm, has been retained as the operator, further strengthening its strategic partnership with Three Wall Capital.
