Barings completes USD650m sale of seven US hotels
Barings, on behalf of a major international financial services company, has completed the USD650 million sale of seven US hotels to a Hong Kong-based investment management company.
Barings is being retained by the new owner as asset manager for the hotel portfolio on a long-term basis, and all hotel operation will continue as usual with no change in current hotel management companies or personnel.
Barings’ expertise as a global leader in real estate investment management enabled it to conduct the search for new investors, directly arrange the sale between its client and the new buyer without a broker, and play a significant role in securing private financing for the portfolio with three separate lenders.
“This transaction reflects the value Barings is able to provide to clients through our depth, global reach and our ability to source and manage real estate investment opportunities and serve clients’ capital needs worldwide,” says Scott Brown, Global Head of Real Estate at Barings. “We are delighted to welcome a significant, sophisticated and experienced client to the Barings Real Estate platform and will utilize our deep knowledge in managing hospitality investments to maximize the potential of this group of quality assets for our new partner.”
The portfolio comprises seven upper-upscale business class hotels in the Chicago, Boston, Washington, Seattle and Phoenix metropolitan areas.
“As an asset class, commercial real estate equity continues to attract investors seeking risk-adjusted returns, and assuming an adequate hold period, well-located quality hotel properties also represent a good portfolio diversifier,” says Michael Zammitti, Head of US Real Estate Equity at Barings.
Jim O’Shaughnessy, a managing director at Barings Real Estate, says: “We are grateful for the opportunity to apply the deep expertise of our hotel investment and asset management team, our research-focused investment process and rigorous financial reporting to leverage the significant value of this portfolio on behalf of our new client.”