HBE Completes 4,867-Key Hotel Portfolio Sale

SAN FRANCISCO-HBE Corp. of St. Louis has completed the sale of its five-property, 4,867-key Adams Mark hotel portfolio to Chartres Lodging Group, the locally based hotel investment and advisory firm that recently changed its name from Oxford Lodging Advisory and Investment Group. The new ownership plans to spend an additional $240 million to renovate and rebrand the properties, which are located in Dallas, Denver, St. Louis, Indianapolis and Buffalo.

Chartres Lodging Group principal Bruce Blum tells GlobeSt.com the portfolio was put under contract in the summer and would have closed sooner had it not been for the “capital markets dislocation,” which he says caused numerous transactions to be delayed or not close at all. The sale price was not disclosed by the parties involved, but one industry expert tells GlobeSt.com the portfolio likely traded for around $500 million, or $100,000 per key. The sale closed yesterday.

“We addressed the owners’ need to sell all the properties at once,” Blum tells GlobeSt.com. “We’re confident we got a discount to market value.”