Under the agreement, Dallas-based Aimbridge Hospitality will manage The Holiday Inn San Antonio International Airport, Sheraton Suites Cypress Creek in Fort Lauderdale, Embassy Suites Downtown St. Paul, DoubleTree Suites Tampa Airport-Westshore, DoubleTree Suites in Raleigh-Durham, and the Embassy Suites Boca Raton. The portfolio totals 1,527 rooms.
Meridian Capital Group, LLC, a leading national commercial real estate advisory firm, negotiated an $85 million acquisition and construction loan in connection with the investment.
The hotel operations were acquired in May by an affiliate of Platinum Equity, which specializes in acquiring underperforming businesses and transforming them through hands-on operational improvements. Platinum Equity's strategy for this investment included replacement of the management company overseeing day-to-day operations at the hotels.
"An important aspect of our investment approach involves putting strong management teams in place at our businesses," said Platinum Equity Principal David Aroesty. "Aimbridge has substantial experience in the hospitality industry and we're confident they will help us transform these businesses."
Dave Johnson, President and CEO of Aimbridge Hospitality, said that Platinum Equity has committed substantial operations and financial resources to the investment, and he expressed confidence that the six hotels would emerge as industry leaders for service, amenities and guest experience.
"We look forward to managing these hotels, and plan to capitalize on a variety of improvements to increase the value of the hotels," Mr. Johnson said.
Seth K. Grossman, a Managing Director based in Meridian's Carlsbad, California office, led the Meridian team while assisting with the financing. In addition to the upfront funding, this loan also provides future fundings to allow the borrower to complete significant renovations and reposition the assets in the portfolio to the upper end of their respective markets.
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