Eagle Hospitality selling Embassy Suites in Isla Verde
Eagle Hospitality Properties Trust, which owns 13 premium-branded hotels including the 299-room Embassy Suites San Juan Hotel & Casino in Isla Verde, announced Monday it has reached an agreement with its secured lender that allows it to sell its portfolio and repay its secured debt at a discount.
Eagle Hospitality will be considering offers from investors interested in some or all of the hotels in the portfolio, the company said in a statement.
“The Embassy Suites, Hilton, Marriott and Hyatt-branded properties are experiencing excellent growth and are well-positioned in their markets,” said Marc Beilinson, managing director of Beilinson Advisory Group and Eagle Hospitality’s chief restructuring officer.
“Purchasers will have the flexibility to appoint their own management at 11 of the 13 properties without termination expense,” he said, without disclosing which properties will keep their current management in place.
Eagle Hospitality purchased the Embassy Suites San Juan Hotel & Casino for $60 million from Mora Development Corp. in 2005. Despite the change in ownership at the time, Hilton Hotels continued to manage the Embassy-brand hotel which has been in operation since 1996.
The portfolio of Eagle Hospitality properties for sale are: the 321-room Cincinnati Landmark Marriott; the 184-room Chicago Marriott Southwest at Burr Ridge; the 336-room Hyatt Regency Rochester; the 284-room Embassy Suites Hotel Columbus/Dublin; the 271-rooms Embassy Suites Hotel Cleveland/Rockside; the 273-room Embassy Suites Hotel Boston at Logan International Airport; the 174-room Embassy Suites Hotel Denver-International Airport; the 270-room Embassy Suites Hotel Phoenix-Scottsdale; the 243-room Embassy Suites Hotel Tampa-Airport/Westshore; the 226-room Embassy Suites Hotel Cincinnati-RiverCenter; the 351-rooms Hilton Glendale; the 306-room Hilton Cincinnati Airport; and the Isla Verde hotel.
Eagle Hospitality has pumped $77 million in capital expenditures into the properties since 2008, it said. For the 12 months ended July 2012, the hotels as a portfolio achieved: an average daily rate of $126; an average occupancy rate of 75.4 percent; growth of revenue per available room (RevPAR) of 7.1 percent; and EBITDA growth of 15.9 percent.
“This is a tremendous opportunity for investors to acquire high-performing assets amid a historically low-cost market for borrowing,” Beilinson said. “The hotels are poised to continue growing revenue and earnings and to exploit certain revenue enhancement and expense savings opportunities.”