Blackstone Group LP, is in the early stage of marketing a group of select-service hotels which was sold in 2017 for $407.4 million.Published on : Saturday, April 7, 2018
Blackstone Group LP, is in the early stage of marketing a group of select-service hotels which was sold in 2017 for $407.4 million.
A sale of about 15 U.S. properties is a part of the ordinary course of managing a large portfolio.
While it’s unclear how much the properties may fetch, American Hotel Income Properties REIT LP paid $407.4 million for 18 premium-branded select-service hotels last June.
A Blackstone representative declined to comment on plans to sell the hotels. The New York-based alternative-asset manager has amassed more than 100 select-service hotels in the U.S., anchored by its purchase of 47 extended-stays Residence Inn and Homewood Suites hotels in 2014 for roughly $800 million.
These select-service hotels are usually defined as properties with limited food-and-beverage offerings and amenities. They’re appealing to investors partly because they demand much lower capital expenditures, creating the potential for higher returns.
Blackstone Group has an likeness for the select-service market. Last year, it made a $24-a-share offer to acquire RLJ Lodging Trust, one of the largest owners of premium select-service hotels.
The bid was ultimately rebuffed, and RLJ went on to acquire FelCor Lodging Trust Inc., a move that increased its portfolio of full-service hotels.
Tags: blackstone group, capital expenditures, homewood suites, Residence Inn, US