Shaner Hotel Holdings LP has approximately $200 million of debt and equity to invest in the development and construction of between 12 and 15 Marriott-branded hotels. Lance Shaner, chairman and CEO of SHG, tells GlobeSt.com that Rothschild/Five Arrows is investing $63 million of equity in the partnership and the JV will borrow approximately $140 million on the properties under development.
They will include the Residence Inn, Courtyard by Marriott and Fairfield Inn & Suites brands. The targeted areas are in the Northeast and Southeast. The partnership currently has five properties in its development platform underway in Northern and Central Florida, and Shaner says all of the new properties will be developed within two years.
In addition, SHG is contributing 12 of its existing hotels, including newly constructed Marriott Courtyards in Mechanicsburg and Jacksonville, FL, to the partnership. The formation of the joint venture "will provide working capital to build on this foundation," Shaner says. As a result, he adds, the partnership will have a portfolio of up to 30, primarily Marriott-branded hotels.
Under the joint-venture agreement, Pike Aloian and John McGurk, principals of Five Arrows, join the board of Shaner Hotel Holdings LP. SHG and its affiliates currently own and manage 23 hotels with an aggregate of more than 3,500 rooms in 14 states. Regarding the partnership, in a statement, Aloian credits SHG with "a history of both outstanding development and operational excellence."
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