Goldman Sachs nixes $1.7B hotel sale to Moody National

Change in funding costs to blame

New York /
Aug.August 03, 2015 09:40 AM

Goldman Sachs opted out of a deal to sell 149 U.S. hotels to Moody National, for $1.73 billion.

An increase in funding costs is to blame for the decision, according to a spokesperson from Moody National REIT I, a non-traded real estate investment fund. The potential acquisition deal was disclosed in a regulatory filing in May. The seller wasn’t disclosed at that time.

The hotels were part of a portfolio controlled by Goldman Sachs’ Whitehall real estate unit. It mostly comprised of properties purchased for $1.2 billion from the family of motel operator Gary Tharaldson in 2006, according to two people with knowledge of the transaction, Bloomberg News reported.

It would have been Houston-based Moody National’s largest purchase in its four-year history. A completed deal would have raised the company’s assets under management to $2.5 billion. [Bloomberg] Ariel Stulberg


Related Articles

arrow_forward_ios
BRP Companies Gets $290M from Goldman Sachs for Queens Opportunity Zone project
BRP Companies Gets $290M from Goldman Sachs for Queens Opportunity Zone project
BRP Companies Gets $290M from Goldman Sachs for Queens Opportunity Zone project
Goldman Sachs CEO David Solomon and 1 Flatbush Avenue in Brooklyn (Getty, Hillwest, iStock)
Oh, honey: Goldman Sachs to add beehives to real estate assets across U.S.
Oh, honey: Goldman Sachs to add beehives to real estate assets across U.S.
Co-head of Goldman’s Europe Tavis Cannell with the Paris building (Google Maps, Goldman Sachs)
Goldman Sachs spends $119M on Paris office, retail building
Goldman Sachs spends $119M on Paris office, retail building
973 Fifth Avenue and David Leuschen (Google Maps, Riverstone Holdings)
Former Goldman Sachs partner lists Upper East Side townhouse for $80M
Former Goldman Sachs partner lists Upper East Side townhouse for $80M
Entera CEO Martin Kay (Entera, iStock)
Single-family data startup Entera raises $32M
Single-family data startup Entera raises $32M
From left: Wells Fargo’s Charles Scharf, SL Green's Marc Holliday, Goldman Sachs’ David Solomon and One Vanderbilt (Getty)
Goldman Sachs, Wells Fargo leading $2.25B refi of One Vanderbilt
Goldman Sachs, Wells Fargo leading $2.25B refi of One Vanderbilt
Goldman Sachs CEO David Solomon (Getty)
Goldman Sachs plans move to South Florida
Goldman Sachs plans move to South Florida
Denizen Bushwick at 54 Noll Street (Photos via Denizen Bushwick)
All Year nears $650M financing for Bushwick luxury rentals
All Year nears $650M financing for Bushwick luxury rentals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...