Investment partners complete acquisition of extended stay hotel portfolio

George Sell George Sell Uploaded 24 October 2019

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US: A partnership between Three Wall Capital and Guggenheim Investments has completed the acquisition of an 18-asset extended stay hotel portfolio.

The portfolio includes hotels located in North Carolina, Virginia, Florida, Texas, Tennessee, and Georgia, 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. The hotels are all described as "well positioned in their respective markets and are proximate to dense retail corridors, office parks, hospitals, airports, residential communities, and major highway systems".

Aimbridge Hospitality has been retained as the operator, strengthening its partnership with Three Wall Capital.

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. This acquisition complements our existing portfolio and aligns with our goals for future growth."

Three Wall’s portfolio consists of 54 hotels following the close of this acquisition, 46 of which represent extended stay hotels. Clients managed by Guggenheim Investments also provided the mortgage debt for the portfolio acquisition.

The JLL Capital Markets team led by managing director Chris Dewey represented the seller in the transaction. “This diverse portfolio, consisting of extended stay hotels across multiple class segments, provides significant in-place cash flow in strong southeastern growth markets,” Dewey said. “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.”

 

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