Cerberus Capital Management, the New York-based private equity firm that once owned the commercial property assets of The Newhall Land and Farming Co., has purchased the Embassy Suites hotel in Valencia and 63 other hotels across the country from Innkeepers USA Trust of southern Florida.
Cerberus made the purchase in partnership with Chatham Lodging Trust, a Florida-based real estate investment trust.
According to Chatham, which holds a 10.3 percent interest, the gross purchase price for all 64 hotels was $1.02 billion, including the assumption of approximately $675 million of mortgage debt on 45 of the hotels. The other 19 hotels are unencumbered.
The acuisition involves 8,329 rooms at a price of roughly $118,000 per room.
Chatham said it will provide asset management services to the joint venture, and all operating costs will be paid by the joint venture.
All but one hotel will continue to be managed by Island Hospitality Management, a hotel management company that is 90 percent owned by Jeffrey H. Fisher, Chatham’s chief executive officer and president.
Chatham currently owns 18 hotels with an aggregate of 2,414 rooms in 10 states and the District of Columbia.
Chaired by former Bush Treasury Secretary John W. Snow, Cerberus is one of the largest private investment companies in the United States and made headlines when it purchased and then liquidated a controlling interest in Chrysler. It still controls the former GMAC.
In 2004, Cerberus bought LNR, the commercial property investment company that had spun off from Miami-based Lennar Corp. At the time, Lennar and LNR each owned half of Newhall Land through a holding company, LandSource Communities Development LLC, which later declared bankruptcy. Newhall Land was the developer of the Valencia Industrial Center where the Embassy Suites hotel is located.
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.
Los Angeles County Parks is hiring. This Spring, we are looking to employ our local L.A. County Youth with an excellent entry level job that pays more than minimum wage ($16.04) and allows them to work at their local L.A. County Park, including Val Verde Park.
The Los Angeles County Department of Health Services announced that the last day of operations for the COVID-19 PCR testing centers will be Friday, March 31.
Santa Clarita Valley residents once again came together during the 2022 holiday season to raise money and donate items to charity, as approximately 2,500 riders joined Santa Clarita Transit’s Holiday Light Tour.
Deborah Anderson, Los Angeles County Library’s assistant director of Education and Engagement, has been selected to receive the prestigious 2023 Sullivan Award for Public Library Administrators Supporting Services to Children.
In alignment with both the U.S. Centers for Disease Control and Prevention and the California Department of Public Health, the Los Angeles County Department of Public Health will change to weekly reporting of COVID-19 cases, hospitalizations and deaths data beginning April 6.
Los Angeles County Treasurer and Tax Collector, reminds property owners that the second installment of the 2022-23 Annual Secured Property Taxes becomes delinquent
Children's Bureau is one of the largest private, non-profit adoption agencies in California and one of the few that is nationally accredited by the Child Welfare League of America.
With the lifting of county, state and federal COVID-19 emergency orders, the Los Angeles County Department of Public Health continues to ensure easy access to free vaccines, boosters, tests and therapeutics.
Due to the recent rainfall, Los Angeles County Health Officer, Muntu Davis, MD, MPH, is cautioning residents that bacteria, chemicals, debris, trash, and other public health hazards from city streets and mountain areas are likely to contaminate ocean waters around discharging storm drains, creeks, and rivers after the rainfall. Individuals who enter the water in these areas could become ill.
The Santa Clarita Economic Development Corporation has an interactive, online tool that provides themed virtual tours of the amazing features our community has to offer.
Los Angeles County Supervisor Kathryn Barger hosted an intimate reception honoring several local artists affiliated with Tierra del Sol, a non-profit organization based in Sunland that helps individuals with developmental disabilities hone their skills in the arts and discover career opportunities.
In alignment with both the U.S. Centers for Disease Control and Prevention and the California Department of Public Health, the Los Angeles County Department of Public Health will change to weekly reporting of COVID-19 case, hospitalization and death data. The last day of daily reporting will be today, Tuesday, March 28. Starting the week of April 3, COVID-19 data will be reported weekly.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.
0 Comments
You can be the first one to leave a comment.