Mergers & Acquisitions

🏦 Mohari Hospitality acquired Venice's iconic Bauer Hotel, partnering with Omnam Investment Group. The Bauer, located in the San Marco district on the Grand Canal, will be restored; Rosewood Hotels & Resorts will operate it. Mohari reportedly offered €309 million, outbidding LVMH's founder. The hotel was previously owned by Signa. Mohari's portfolio includes recent acquisitions in Paris and Madrid. Advisers included Kryalos SGR, DLA Piper, Deloitte, Eastdil Secured, CBRE, and Cushman & Wakefield.

🏠 In Charleston, South Carolina, Highline Hospitality Partners acquired the dual-branded Hyatt Place/Hyatt House Charleston Historic District, marking their 13th and 14th hotel addition and entry into the Charleston market. The property offers 304 rooms, combining 113 Hyatt House extended-stay rooms and 191 Hyatt Place rooms. Built in 2015, it features 16,000 square feet of retail and office space, a 398-space parking garage, 8,600 square feet of meeting space, and a rooftop bar. Renovation and repositioning plans are underway. Avion Hospitality will manage the hotel.

💳 Commercial Property Assessed Clean Energy (C-PACE) programs, first introduced in California in 2009, have been utilized in over 3,300 development projects across 22 states and Washington, D.C. over the last 15 years. Facing elevated interest rates and a liquidity crisis expected to persist for another 12 to 24 months, C-PACE loans are projected to gain momentum in 2024, potentially outpacing 2023. However, C-PACE loans come with considerations: capitalized interest from loan closure, fees including a 1% origination fee and third-party charges, possible rate adders of 10 basis points, and prepayment penalties ranging from 1% to 5% for up to 10 years. Despite being promoted as a cheaper alternative to mezzanine loans, C-PACE may increase costs with senior lenders.

🏨 Trinity Investments, Oaktree Capital Management, L.P., and Partners Group acquired The Standard, London; financial details undisclosed. The hotel, opened in 2019, offers 266 rooms and suites, six dining options, and is now part of Hyatt's brand portfolio. In October, Hyatt acquired Standard International brands and affiliates, adding 22 hotels and nearly 2,000 rooms globally. The acquisition follows Trinity and Oaktree's recent purchase of Park Hyatt Zurich and marks Partners Group's first European hotel investment with Trinity, totaling over €550 million in European and U.K. hotel investments.

📦 Just Eat started exploring the sale of Grubhub in April 2022, aiming to focus on its strongest markets. Grubhub, not yet profitable with declining order volumes exacerbated by New York delivery fee caps, was sold at a 90% discount compared to its 2021 purchase price, effectively a 94% discount when adjusted for inflation. Just Eat Takeaway.com's CEO, Jitse Groen, sees the sale as a way to enhance cash generation and accelerate growth. The US startup Wonder, which acquired Grubhub, previously bought meal kit company Blue Apron. Wonder aims to integrate Grubhub's offerings into its 'super app'. Shares in Just Eat rose 19% after the sale announcement, with the deal's completion expected in the first quarter of 2025, pending regulatory approval.

🏠 Joint venture led by Regent Partners and Mariner Group refinanced Thompson Savannah, a luxury hotel, with a $50 million short-term first mortgage from Mesa West Capital. The loan replaces the initial construction loan for the 193-key hotel, opened in August 2021. Located at the Savannah River’s southern bank, the Thompson Savannah offers a restaurant, bakery, bars, pool, fitness center, and 11,000 square feet of meeting space. Since its opening, the hotel has shown growth in occupancy, RevPar, and ADR. Financing was arranged by Berkadia’s Hotel and Hospitality Group in New York.

💰 Ashford Hospitality Trust refinanced a $121.5 million loan for the 703-room Marriott Crystal Gateway Hotel in Arlington, Virginia. The new loan matures in three years with two one-year extensions, bearing a SOFR plus 4.86% interest. The deal freed $31 million to reduce the company’s strategic financing, enabling a reduction in the exit fee from 15% to 12.5% if the balance drops below $50 million by November 15, 2024. The current CEO, Stephen Zsigray, aims to clear the debt by year-end.

🏨 JLL's Hotels & Hospitality Group secured refinancing for the 254-key Hilton Garden Inn Seattle Bellevue Downtown for West77 Partners. The fixed-rate, five-year loan was obtained through a national life insurance company, allowing the borrower to repay an existing bank loan and return equity. Located in Bellevue, Washington, the hotel opened in 2018 and features over 3,000 square feet of meeting space, an on-site restaurant, and is near attractions like Bellevue Square. The JLL Debt Advisory team included Managing Director Adrienne Andrews and Analyst Jessica Mehra.

🏨 PM Hotel Group and Sightline Hospitality announced a strategic merger, expanding PM Hotel Group's footprint across the U.S. with 22 additional properties, including a debut in the Hawaiian Islands, as part of their lifestyle hotel division Modus. The merger aligns with consumer preferences for experiential travel, adding brands like RESET and evo Hotels, which offer nature-centric experiences and access to outdoor activities. Presidents Joseph Bojanowski and Kirk Pederson emphasize the merger's potential to elevate hospitality management standards and drive innovation in the industry.

📌 Davidson Hospitality Group, generating $2 billion in annual revenue, has been acquired by Nautic Partners from KSL Capital Partners' affiliate. Nautic Partners recently closed a $4.5 billion fund, Nautic Partners XI. The partnership aims to support Davidson's growth in the hospitality sector, focusing on lifestyle, luxury, upscale, and resort properties. Financial advisor Moelis & Company LLC and legal counsel Davis Graham and Stubbs LLP assisted Davidson, while Locke Lord LLP and Kirkland & Ellis LLP advised Nautic.