Goldman Sachs nixes $1.7B hotel sale to Moody National

Change in funding costs to blame

TRD 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
30 Hudson Street in Jersey City and WeWork CEO Sandeep Mathrani (Wikipedia)

WeWork scores big lease at Goldman Sachs’ Jersey City office tower

WeWork scores big lease at Goldman Sachs’ Jersey City office tower
A photo illustration of Goldman Sachs CEO David Solomon (Getty; iStock)

Goldman Sachs to juice cash-strapped RE owners with $3B fund

Goldman Sachs to juice cash-strapped RE owners with $3B fund
Goldman CEO David Solomon and 1 Flatbush Avenue (Credit: Michael Kovac/Getty Images; Hill West Architects)

Goldman reactivates real estate platform in NYC with big DoBro buy

Goldman reactivates real estate platform in NYC with big DoBro buy
The Coca-Cola building at 711 Fifth Avenue and Michael Shvo (Credit: Google Maps)

Michael Shvo, partners secure $545M loan for Coca-Cola building

Michael Shvo, partners secure $545M loan for Coca-Cola building
Silverstein Properties' Tal Kerret, Dino Fusco, Marty Burger and 7 WTC (Credit: Joe Woolhead)

Former Goldman exec will be new COO at Silverstein Properties

Former Goldman exec will be new COO at Silverstein Properties
Softbank CEO Masayoshi Son and Goldman Sachs CEO David Solomon (Credit: Getty Images)

Goldman Sachs will lead Phase II of SoftBank’s WeWork rescue plan

Goldman Sachs will lead Phase II of SoftBank’s WeWork rescue plan
Jho Low and the Time Warner Center at 25 Columbus Circle (Credit: Getty Images)

Financier at center of 1MDB fraud case agrees to give up hundreds of millions of dollars

Financier at center of 1MDB fraud case agrees to give up hundreds of millions of dollars
70 Pine Street and Goldman Sachs chairman Lloyd Blankfein (Credit: Wikipedia and Getty Images)

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan
arrow_forward_ios

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

Loading...