Inland American Lodging Group Inc., a wholly-owned subsidiary of Inland American Real Estate Trust Inc., acquired five hotels through three separate transactions for approximately $393.1 million.
In the first transaction, Inland American Lodging bought three hotels in a portfolio deal with DiamondRock Hospitality for $262.5 million, of approximately $184,600 per key. The hotels, including Renaissance Arboretum in Austin, Texas, Renaissance Waverly in Atlanta and Marriott Griffin Gate Resort & Spa in Lexington, Ky., contain a total of 1,422 rooms and more than 153,000 sq. ft. of meeting and banquet space. All three hotels belong to Marriott-affiliate brands and will continue to be managed by Marriott.
“This is very significant transaction for Inland American,” said company President and CEO Marcel Verbaas in a statement. “Inland American is receiving high-quality assets to enhance our portfolio and continue our expansion into the upper-upscale and luxury segments of the market at attractive pricing. Also, the debt assumed on these properties enhances our equity return and our future capital expenditures into these properties should further strengthen their market position.”
Inland American Lodging also purchased the Marriott San Francisco Airport Waterfront, a 685-room hotel in Burlingame, Calif., from Host Hotels and Resorts for $108 million, or approximately $157,700 per key. The hotel is located adjacent to the San Francisco International Airport and is operated by Marriott under a long-term management contract.
Finally, the firm purchased Hilton St. Louis Downtown in St. Louis from APHM St. Louis LLC for $22.6 million, or approximately $115,900 per key. The Hilton St. Louis Downtown contains 195 guestrooms and 4,500 sq. ft. of meeting space.