A second group of 24 hotels is scheduled to close in mid-July, while the remaining 13 hotels, currently under construction or recently opened, are scheduled to close over the next six to 18 months. WLS will retain management of the hotels under long-term management agreements. The hotels, which consist primarily of Marriott and Hilton brands, will continue to operate under the same affiliations with long-term franchise agreements.
"The WLS acquisition is consistent with our strategy to invest in upscale, focused service hotels with premium brands in desirable markets," says Thomas Baltimore Jr., president of RLJ. The private real estate investment company is one of the RLJ Cos. controlled by Robert L. Johnson, who is the founder of BET and owner of the NBA Charlotte Bobcats.
Baltimore tells GlobeSt.com that the transaction will be financed by a CMBS deal led by Wachovia, Merrill Lynch, Morgan Stanley, Wells Fargo and Capmark, formerly GMAC Commercial Mortgage. "The total debt was $764 million provided by those five lenders." The deal will likely go to market within 60 to 90 days.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
