Greenwich, Conn.-based Wheelock Street Capital has spent $221 million to purchase a 12-hotel portfolio from affiliates of Inland American Real Estate Trust Inc. and a three-hotel group from affiliates of Sunstone Hotel Investors Inc.
The Connecticut Post reports that the Inland American transaction closed for $116 million and involves hotels in the Southeast, Texas, Illinois and Arizona; 10 of the 12 hotels are branded under license agreements with affiliates of Hilton and Marriott, with the remaining two hotels licensed by affiliates of Choice Hotels and InterContinental. Wheelock also purchased three hotels for $105 million: the 257-room San Diego Hilton Del Mar, the 229-room Minneapolis DoubleTree Guest Suites and the 350-room Detroit Marriott Troy.
‘Wheelock will invest in additional capital upgrades across both portfolios to position the assets to benefit from a favorable fundamental backdrop and high quality brand affiliations,’ says Jonathan Paul, managing partner at Wheelock Street Capital. ‘The hotel industry is very healthy. We've had 28 months in a row of performance improvement. If you can buy with cash, there are opportunities out there.’