Monarch Alternative Capital, an investment firm with approximately $9 billion in assets under management, purchased 10 full-service hospitality real estate assets located in four states in the United States for a total consideration of $360 million. The properties were sold by Eagle Hospitality Real Estate Investment Trust as part of its bankruptcy process.
Monarch initially assisted Eagle Hospitality during the bankruptcy process in early 2021 by providing financing in the form of a $100 million debtor-in-possession loan to help fund ongoing expenses related to hotels and the bankruptcy case. In March, Monarch was also named the stalking horse bidder for the 15 properties Eagle Hospitality looked to sell, providing a floor bid for the Section 363 sale process. Following the auction, Monarch emerged as the ultimate buyer for 10 properties.
The portfolio consists of 10 hotels and resorts located in California, Colorado, Connecticut and Florida. The majority of the properties are located in California and Florida, with a focus on proximity to leisure destinations such as Disneyland and Disney World and accessibility to highly trafficked convention centers.
“The overall Eagle Hospitality transaction exemplifies the value of our broad investment capabilities across debt and equity to target compelling opportunities in dislocated sectors,” Ian Glastein, managing principal at Monarch Alternative Capital, said. “Our ability to provide speed and certainty of execution in complex situations is highly valued by our partners and counterparties.”
Monarch partnered with Hersha Hospitality Management, a hospitality management, investment and development firm with approximately 150 hotels across 23 states, to assist in the operations and management of the portfolio.
