Daily News: September 18, 2012

GE Franchise Finance Provides Financing in Hotel Deal


Wheelock Street Capital announced that affiliates of Wheelock Street Capital have acquired a 12 asset select service hotel portfolio from affiliates of Inland American Real Estate Trust, and, in an unrelated transaction, a three asset full service hotel portfolio from affiliates of Sunstone Hotel Investors for a combined value of $221 million.

On September 13, affiliates of Wheelock Street Capital acquired a 12 asset select service hotel portfolio from affiliates of Inland American Real Estate Trust for total consideration of approximately $116 million. Financing for the transaction was provided by a combination of assumed CMBS loans and newly originated senior financing provided by GE Capital, Franchise Finance.

The portfolio is located primarily in the Southeast and Texas, with additional assets located in Illinois and Arizona. 10 of the 12 hotels are branded under long term license agreements with select service and extended stay brand affiliates of Hilton and Marriott, with the remaining two hotels licensed by affiliates of Choice Hotels and InterContinental. The portfolio will be managed by McKibbon Hotel Management and the North Central Group.

Separately, on September 14, affiliates of Wheelock Street Capital acquired three full service assets from affiliates of Sunstone Hotel Investors for a gross purchase price of $105 million. Wheelock Street assumed the properties’ existing CMBS financing. The portfolio includes the 257-room San Diego Hilton Del Mar, the 229-room Minneapolis DoubleTree Guest Suites and the 350-room Detroit Marriott Troy. Sage Hospitality will manage the San Diego Hilton Del Mar and Minneapolis DoubleTree Guests Suites while Marriott International continues to manage the Detroit Marriott Troy.