Trending
Blackstone sells five South Florida budget hotels for $61M
Georgia-based Global Hotel Group acquires Motel 6 and Studio 6 properties as part of larger $280M portfolio deal
Blackstone sold off a quintet of budget hotels in South Florida for $61 million as part of an eight-property portfolio deal in the Sunshine State.
Affiliates of Georgia-based Global Hotel Group bought three Motel 6 properties in Cutler Bay, Dania Beach and Fort Lauderdale, as well as two Studio 6 extended-stay hotels in Coral Springs and West Palm Beach, records show.
The five properties traded hands as part of a larger $279.4 million deal that also includes Global Hotel Group picking up four Motel 6 locations in Orlando and the refinancing of two hotels it already owns in Lakeland and Miami, according to published reports. Global Hotel Group, led by CEO Sam Patel, obtained a $180.8 million mortgage from Starwood Mortgage Property.
The seller is G6 Hospitality, Blackstone’s Texas-based operator of the Motel 6 and Studio 6 budget hotel chains, which the investment giant acquired in 2012. Last year, G6 scored a $685 million loan from Goldman Sachs and JPMorgan to refinance more than 100 Motel 6 and Studio 6 properties across the country. In Cutler Bay, Global Hotel Group paid $10.7 million or $69,480 per key for the 154-room Motel 6 at 10775 Caribbean Boulevard that G6 acquired for $6 million in 2009. The hotel was completed in 1979.
In Dania Beach, Global Hotel Group paid $12.7 million, or $77,914 per key for the Motel 6 at 825 East Dania Beach Boulevard, which G6 paid $5.8 million for in 2012. The 163-room property was built in 1982.
In Fort Lauderdale, Global Hotel Group paid $12.1 million for the Motel 6 at 1801 State Road 84 that G6 acquired for $4 million in 2008. The deal broke down to $114,150 per key for the 106-room hotel completed in 1973.
As for the two Studio 6 properties, Global Hotel paid $14.6 million for the hotel at 5645 University Drive in Coral Springs and $10.8 million for the one at 1535 Centrepark Drive North in West Palm Beach. G6 had paid $6 million in 1998 for the Coral Springs hotel, which was completed the same year, and $7.8 million in 2012 for the West Palm Beach site that was built in 1998.
Blackstone, which is reportedly eyeing a $1 billion sale of G6, has offloaded other pieces of the portfolio in recent weeks, including four Motel 6 locations in the San Francisco Bay Area for $40.3 million last month and one in Los Angeles for $46 million in June.