Hotels change hands in L.A., Spain
Two hotels have recently been sold. Here’s a look:
Braemar to acquire Mr. C Beverly Hills Hotel
Braemar Hotels & Resorts Inc. has entered into a definitive agreement to acquire the 138-room Mr. C Beverly Hills Hotel in Los Angeles. In addition, the company is also acquiring five luxury condominium residences adjacent to the hotel. The acquisition is expected to close on or prior to July 9, subject to customary closing conditions.
The Mr. C was built in 1965 and underwent an extensive renovation in 2011. It has 138 guestrooms, including 22 suites; a full-service spa; and three food and beverage outlets (in addition to in-room dining). The hotel also offers more than 24,000 sq. ft. of flexible indoor/outdoor meeting space; a 4,500-sq.-ft. outdoor pool terrace with daybeds and cabanas; a fitness center with personal fitness training; and a business center. Additionally, the property includes five newly constructed and fully furnished residences offering the hotel’s personalized services and amenities.
The total consideration for the acquisition is $77.9 million and consists of $65.4 million for the hotel ($474,000 per key) and an allocated price of $12.5 million for the five adjacent condominium units. The purchase price for the Mr. C represents, as of Dec. 31, 2019, a trailing 12-month capitalization rate of 5.0% on hotel net operating income of $3.9 million and a trailing 12-month 16.5x hotel EBITDA multiple, according to Braemar’s preliminary estimates based on unaudited operating financial data provided by the sellers. The company expects to realize a stabilized yield of more than 8% on its investment in the next three to five years. On a trailing 12-month basis as of Dec. 31, 2019, the property achieved RevPAR of $251.14, with 75% occupancy and ADR of $334.40, according to unaudited operating financial data provided by the sellers.
Bain Capital, Stoneweg JV purchases hotel in Spain
Bain Capital Credit LP and Stoneweg Hospitality via their real estate hospitality joint venture have acquired the 400-room Andalucía Plaza hotel complex in Marbella, Spain, with the aim of renovating the establishment to offer a new hotel experience in one of the best locations on the Spanish coast. The property will continue to be operated by H10 Hotels until the end of this year.
The repositioning of the hotel will transform this establishment located next to the Casino de Marbella into a lifestyle destination and a center point for the multiple events that take place throughout the year in Marbella, according to the companies. The renovation will include the refurbishment of the guestrooms; the common areas, including the lobby, the pool and the various F&B outlets; and the gardens and outdoor terrace.