Colony Capital reconsiders hotel portfolio in bid to shift from traditional properties

Tom Barrack-led firm, which defaulted on $3.2B in debt earlier this month, is reportedly looking to focus on digital properties

TRD NATIONAL /
May.May 28, 2020 09:00 AM
Colony Capital CEO Tom Barrack (Getty, iStock)
Colony Capital CEO Tom Barrack (Getty, iStock)

Colony Capital is weighing its options for its portfolio of hotels.

The Tom Barrack-led company has hired Moelis & Co to evaluate alternatives for the holdings, which include full-service, extended-stay and select-service hotels, according to Bloomberg.

Sources familiar with the matter told the publication that Colony was looking to move away from traditional commercial real estate to focus more on digital infrastructure properties.

Colony declined to comment on the report. Earlier this month, it said an advisor was helping the company “evaluate strategic and financial alternatives to maximize the value of its hospitality assets.”

It was also reported earlier this month that Colony had defaulted on $3.2 billion in loans backed by hotel and health care properties. The properties accounted for three quarters of Colony’s real estate balance sheet.

The hospitality industry has been one of the hardest hit by the coronavirus pandemic. With travel stalled, some hotels temporarily closed while others suffered from abysmal occupancy rates — though those fundamentals have started to recover.

In April, Barrack warned that the real estate industry was on the verge of collapse because the government is letting renters and homeowners skip payments due to the coronavirus.

He plans to step down as CEO later this year. [Bloomberg] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Colony’s Tom Barrack,, One California Plaza, and Rising CEO Christopher Rising (Credit: TM/Bauer-Griffin/GC Images via Getty Images, Tiffany Rose/Getty Images)

Here’s what tenants pay at Colony Capital & Rising Realty’s One California Plaza

Here’s what tenants pay at Colony Capital & Rising Realty’s One California Plaza
1723 N Wilcox Avenue (Credit: Google Maps)

Hollywood hotel construction craze: Developer abandons apartment project for hotel instead

Hollywood hotel construction craze: Developer abandons apartment project for hotel instead
From left: Colony Capital's Tom Barrack, 8250 Milliken Avenue and Lincoln Property Co.'s David Binswanger (Credit: Getty Images, Google Maps)

Tom Barrack’s Colony Capital looks to part with $5B portfolio amid other massive industrial deals

Tom Barrack’s Colony Capital looks to part with $5B portfolio amid other massive industrial deals
Colony Capital's Thomas Barrack

Tom Barrack’s Colony Capital snags $1.7B refi on healthcare properties

Tom Barrack’s Colony Capital snags $1.7B refi on healthcare properties
Jamison moves in new direction with plans to build Koreatown hotel

Jamison moves in new direction with plans to build Koreatown hotel

Jamison moves in new direction with plans to build Koreatown hotel
Another hotel conversion planned for DTLA, this one at historic Continental Building

Another hotel conversion planned for DTLA, this one at historic Continental Building

Another hotel conversion planned for DTLA, this one at historic Continental Building
LaTerra drops 15-story hotel tower from sprawling mixed-use project in Burbank

LaTerra drops 15-story hotel tower from sprawling mixed-use project in Burbank

LaTerra drops 15-story hotel tower from sprawling mixed-use project in Burbank
Colony Capital offloads industrial portfolio to Nuveen for $136M

Colony Capital offloads industrial portfolio to Nuveen for $136M

Colony Capital offloads industrial portfolio to Nuveen for $136M
arrow_forward_ios

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

Loading...