Case Study | Hotel Portfolio Sale
$393 mm Acquisition & Sale of 35 Hotel Portfolio – 13 States
- Encore partnered with an institutional investor to purchase 35 hotels, focused on Marriott and Hilton brands
- The institutional investor committed $85 mm in a programmatic joint venture to further expand Encore’s hospitality portfolio
- Over a 24 month period from 2005 to 2007, Encore utilized $55 mm to re-capitalize and acquire a total of 35 hotels (3,840 guest rooms) in 13 states
- 33 hotels were affiliated with either Marriott or Hilton, two of the most desired industry brands
- After evaluating asset and capital market conditions in 2007, Encore decided to cease new purchases and package/sell the portfolio for a total of $393 mm
- A national Institutional buyer bought 29 of the hotels for $315 mm, while six hotels were sold separately to other buyers for $78 mm