ATLANTA — Hunter Hotel Advisors announced today that it represented Pinnacle Hotel Management (PHM) in the sale of a 15-hotel, select-service portfolio comprised of Marriott- and Hilton-branded hotels for $203 million to the Blackstone Group. Nine of the hotel transactions already have closed, with the remaining six scheduled to close in November. Hunter’s Washington, D.C., and Atlanta offices worked together on the transaction, led by Teague Hunter, president, Mark Morris, senior vice president and Kyle Stevenson, senior vice president.
“At this point in the cycle, premium, select-service portfolios are scarce, allowing Pinnacle to take advantage of prices hovering around all-time highs,” said Hunter. “Nine months in the making, this complex transaction served the future growth plans of both parties.”
The 15 hotels are concentrated in dynamic growth markets along the Eastern Seaboard throughout New England, the Mid-Atlantic states, Fla., and Calif.
“The sale of this portfolio allows us to recycle capital while retaining long-term management agreements,” said Ron Franklin, PHM president/principal.
“We will use the proceeds to reinvest in new assets that can benefit from our ability to add value through investment, repositioning and strong management. We look forward to expanding on our relationship with Blackstone,” said Steve Fairbanks, PHM principal and CIO.
“Industry forecasts remain positive for the next several years, creating unique opportunities for both buyers and sellers,” said Morris. “We were pleased to help both the buyer and the seller execute on their long-term goals. Creativity in deal-making and the ability to move quickly are the key elements in today’s hotel marketplace.”
About Pinnacle Hotel Management
Pinnacle Hotel Management (PHM) was founded in 1997 by Ron Franklin and Dick Vilardo to develop and manage Marriott- and Hilton-branded hotels. In 2002, Franklin and Vilardo were joined by Steve Fairbanks as an investor and partner. The company’s first project, the 123-room Courtyard Orlando East/UCF, opened in June of 1997. Since that time, PHM has developed or purchased 37 additional hotels, including their most recent acquisition, the Boston Tewksbury TownePlace Suites. Pinnacle’s largest project to date is the Orlando Marriott Lake Mary, a 304-room, full-service hotel. The company manages its own hotels, as well as those owned by other companies. Pinnacle has completed 30 ground-up hotel development projects in markets such as Washington, D.C., Fla., New England and Calif. Pinnacle also has successfully completed several brand conversion projects, including the Courtyard Alexandria, Va., the Fairfield Inn and Suites Palm Beach, the Florida Courtyard Key West and the Courtyard Boston Billerica/Bedford.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $93 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics), SCP (Chinese shopping malls), and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.
About Hunter Hotel Advisors
Hunter Hotel Advisors is the nation’s leading investment advisory firm focused exclusively on the hotel industry. Their seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With more than 35 years of experience in both full- and select-service single assets and portfolios, the firm’s capacity in valuation, economic analysis and industry relationships has allowed Hunter to consistently maximize value regardless of market conditions.