Real Estate Investor - Checked into a hotel REIT lately?
. . . Adding to the Miami Condo Boom - Cousins Properties (NYSE: CUZ ) and joint venture partner The Related Group of Florida have begun construction at 50 Biscayne - a 529 unit luxury residential condominium development in Miami, Florida. Located on a full-block facing Biscayne Boulevard between Flagler and First Street in Miami's central business district, the 54-story tower will be one of the tallest structures in Miami when completed in December, 2006. Cousins Properties has been public since 1962.Hotel REITS on the upswing
Checked into a hotel REIT lately?
A number of factors are spurring growth in hotel REITS. Business travel and conferences are enjoying a recovery. Domestic tourism, which had been suffering since 9/11, is also recovering nicely and should continue to rise as unfavorable exchange rates dampen international travel. According to Business Week, hotel REITs have reported an increase in revenue per available room between 7% and 12% in each of the past few quarters.
The big money has taken note of the hotel recovery and has stepped up M&A activity in the sector. Private equity group Blackstone has just agreed to buy hotel owner and franchiser Wyndham International (AMEX:WBR ) for $1.44 billion in cash. Notable deals in the past year include: Hyatt Hotels' purchase of AmeriSuites, CNL Hospitality Properties' acquisition of KSL Recreation Corp., and Blackstone's takeover of Extended Stay America, Prime Hospitality and Boca Resorts. Last year, 10 deals worth about $12 billion took place. Pricewaterhouse Cooper analyst Bjorn Hanson said he expects up to 11 deals in 2005.
Some major hotel REITs include:
Equity Inns (NYSE:ENN )
Hospitality Property Trusts (NYSE: HPT)
<strong>Host Marriott (NYSE: HMT )
LaSalle Hotel Properties (NYSE: LHO )
Starwood Lodging (NYSE: HOT )
. . . Mystical Partnership - Hersha Hospitality Trust (AMEX: HT) has entered into a joint venture with Waterford Hospitality Group, LLC. The newly formed company, to be named Mystic Partners, LLC, will own a portfolio consisting of nine Marriott and Hilton-branded hotels with 1,707 rooms in Connecticut and Rhode Island and an aggregate value of approximately $250 million. Under the terms of the transaction, HT is acquiring a 66.7 percent preferred equity interest in the seven stabilized properties in the portfolio and a 50 percent preferred equity interest in the two newly developed properties in the portfolio.
Hersha Hospitality Trust owns mid-scale and upscale hotels in the eastern United States with strong, national franchise affiliations. The company focuses on acquisition and joint venture opportunities of high quality assets in high barrier to entry markets.
. . . GMH Communities Trust (NYSE: GCT) has acquired Campus Edge Apartments, a Class A, purpose- built student housing property serving students attending the University of North Carolina-Charlotte. The 180 unit/720 bed property was acquired for a purchase price of approximately $23.1 million. The property is in excess of 95% pre-leased for the 2005 Fall semester. The acquisition complements the company's strong portfolio in the student housing market.
. . . Upgrade - Highwoods Properties (NYSE: HIW), one of the largest owners and operators of suburban office properties in the Southeast, has been upgraded to market perform from underperform by Wachovia Securities. Wachovia said the upgrade reflected greater operational confidence, continued balance sheet improvement and greater transactional value in light of peer valuations and sector M&A activity. Recently the company announced it would sell its Charlotte portfolio and its Sabal Park assets in Tampa, Florida, for $228 million.
. . . Thornburg Mortgage (NYSE: TMA ) announced a second quarter dividend of $0.50 per share. The single-family residential mortgage lender is focused principally on the jumbo segment of the adjustable rate mortgage market. The company seeks to deliver attractive dividend income and steady growth by acquiring high-quality mortgage-backed securities and growing its share of the mortgage loan origination business. Recently the company raised $123.2 million in an equity offering. The proceeds will be primarily used to fund adjustable-rate loans originated by the company and to purchase additional adjustable-rate mortgage securities.
Checked into a hotel REIT lately?
A number of factors are spurring growth in hotel REITS. Business travel and conferences are enjoying a recovery. Domestic tourism, which had been suffering since 9/11, is also recovering nicely and should continue to rise as unfavorable exchange rates dampen international travel. According to Business Week, hotel REITs have reported an increase in revenue per available room between 7% and 12% in each of the past few quarters.
The big money has taken note of the hotel recovery and has stepped up M&A activity in the sector. Private equity group Blackstone has just agreed to buy hotel owner and franchiser Wyndham International (AMEX:WBR ) for $1.44 billion in cash. Notable deals in the past year include: Hyatt Hotels' purchase of AmeriSuites, CNL Hospitality Properties' acquisition of KSL Recreation Corp., and Blackstone's takeover of Extended Stay America, Prime Hospitality and Boca Resorts. Last year, 10 deals worth about $12 billion took place. Pricewaterhouse Cooper analyst Bjorn Hanson said he expects up to 11 deals in 2005.
Some major hotel REITs include:
Equity Inns (NYSE:ENN )
Hospitality Property Trusts (NYSE: HPT)
<strong>Host Marriott (NYSE: HMT )
LaSalle Hotel Properties (NYSE: LHO )
Starwood Lodging (NYSE: HOT )
. . . Mystical Partnership - Hersha Hospitality Trust (AMEX: HT) has entered into a joint venture with Waterford Hospitality Group, LLC. The newly formed company, to be named Mystic Partners, LLC, will own a portfolio consisting of nine Marriott and Hilton-branded hotels with 1,707 rooms in Connecticut and Rhode Island and an aggregate value of approximately $250 million. Under the terms of the transaction, HT is acquiring a 66.7 percent preferred equity interest in the seven stabilized properties in the portfolio and a 50 percent preferred equity interest in the two newly developed properties in the portfolio.
Hersha Hospitality Trust owns mid-scale and upscale hotels in the eastern United States with strong, national franchise affiliations. The company focuses on acquisition and joint venture opportunities of high quality assets in high barrier to entry markets.
. . . GMH Communities Trust (NYSE: GCT) has acquired Campus Edge Apartments, a Class A, purpose- built student housing property serving students attending the University of North Carolina-Charlotte. The 180 unit/720 bed property was acquired for a purchase price of approximately $23.1 million. The property is in excess of 95% pre-leased for the 2005 Fall semester. The acquisition complements the company's strong portfolio in the student housing market.
. . . Upgrade - Highwoods Properties (NYSE: HIW), one of the largest owners and operators of suburban office properties in the Southeast, has been upgraded to market perform from underperform by Wachovia Securities. Wachovia said the upgrade reflected greater operational confidence, continued balance sheet improvement and greater transactional value in light of peer valuations and sector M&A activity. Recently the company announced it would sell its Charlotte portfolio and its Sabal Park assets in Tampa, Florida, for $228 million.
. . . Thornburg Mortgage (NYSE: TMA ) announced a second quarter dividend of $0.50 per share. The single-family residential mortgage lender is focused principally on the jumbo segment of the adjustable rate mortgage market. The company seeks to deliver attractive dividend income and steady growth by acquiring high-quality mortgage-backed securities and growing its share of the mortgage loan origination business. Recently the company raised $123.2 million in an equity offering. The proceeds will be primarily used to fund adjustable-rate loans originated by the company and to purchase additional adjustable-rate mortgage securities.
posted by laltman at 2:26 PM
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