Mergers & Acquisitions

🏦 Blackstone announced the final close of their BREDS V real estate debt fund on Friday, securing $8 billion in capital commitments. This matches the record for such investment vehicles and signals a property-market rebound, particularly in the hotel sector. The fund targets vulnerable hotel assets, betting on a commercial real estate upswing. Blackstone Real Estate Debt Strategies is capitalizing on current market conditions by buying underperforming loans and filling financing gaps where banks are reluctant to refinance. Despite pandemic impacts and rising interest rates since 2022 affecting property values, large capital availability continues to drive investments.

👨🏥 Peregrine Hospitality in Denver, Colorado expanded its management portfolio with 26 select-service properties. Five assets were transferred in February, including Hilton Garden Inn in Texas with 133 keys, a 192-key dual-branded hotel in Massachusetts, a 100-key property in Florida, and a 114-key Marriott property in California. Peregrine's portfolio spans 17 states, demonstrating its multi-market service consistency. Additional properties include 21 select-service hotels like Element Atlanta Buckhead and Tru by Hilton Atlanta Galleria Ballpark.

🏨 Dalata Hotel Group, founded in 2007, operates 56 hotels in the UK and Ireland, with expansion into Europe. The company, traded on Euronext Dublin and the London Stock Exchange, with 30 owned properties valued at €1.7 billion, reported €652 million in revenue for 2024 and €234.5 million in adjusted EBITDA. Despite this, its share price of around €5.50 values the group at €1.2 billion, which the board believes is undervalued. Options such as a sale, merger, or private equity investment are being considered, advised by Rothschild & Co. Dalata seeks to reach 21,000 rooms by 2030, an 80% expansion, with 1,600 rooms already in development. In 2024, four new Maldron hotels opened, and Dublin's RevPAR for 2025 is expected to be 2.5% higher than Q1 2024.

🏠 JLL Capital Markets secured $15.9 million financing for Woodland Flats, a 120-unit hotel-to-multifamily project in Gresham, Oregon, arranged for PH Development LLC. The two-year bridge loan is through AGP Capital. The project, 25 minutes from downtown Portland, requires $6.1 million in capital improvements and is expected to complete in 10 months. Woodland Flats features 6,400 square feet of retail space and is PH Development's second such conversion.

🏡 InterContinental Indianapolis, an IHG Hotels & Resorts luxury property, opened in downtown Indianapolis near Monument Circle and the Indiana State Capitol. Housed in the historic Illinois Building, the hotel underwent a $120 million restoration and offers 170 guestrooms and suites, two dining concepts by Chef Craig Baker, a rooftop bar, 5,000 square feet of meeting space, and a Penthouse Suite. Keystone Group completed construction in 2024, reviving one of Indiana's 10 most endangered landmarks. The hotel features historic architecture, modern amenities, and commissioned art with Indiana connections.

🏖 Westgate Resorts to acquire Vacation Ownership Sales, the exclusive partner of VI Resorts, expanding from 22 to over 60 resort destinations, including in Mexico and Canada. The acquisition will include management of a Vacation Club with more than 40 resorts and a $4 million investment in enhancing owner experience. Mike Vasey to join Westgate executive team. VI Resorts celebrates 50 years, with an owner-led board confident in growth and independence through the partnership. Collaboration follows Westgate's partnership with Choice Hotels, offering exchange opportunities for owners within Interval International.

🚀 Westgate Resorts to acquire Vacation Ownership Sales, managing VI Resorts' Vacation Club with 40+ resorts across the US, Mexico, Canada by 2025. Westgate commits $4M+ in enhancements as CEO Jim Gissy touts the move as a "game-changing acquisition." VOS owner Mike Vasey to join Westgate executive team, noting 90+ years of combined company history. VI Resorts, celebrating its 50th anniversary in 2024, to leverage Westgate's experience, while maintaining independence, says VI Owners Association President Betty Flad. Westgate's growth includes a recent partnership with Choice Hotels, allowing timeshare exchanges between Westgate and VI Resorts for owners.