BRAND PARTNERSHIP

Beaverton, OR

ACQUISITION

  • Executed DDA with the City of Beaverton to purchase land at no cost, negotiating significant time and incentives.
  • Transit Oriented Development (TOD) in a Mixed-Use Area. Direct connection to public transit.
  • Extended-stay product opportunity, which is best performing product in submarket.

EXECUTION

  • Assembled strong, local design team
  • Partnered with a relationship lender to get best market terms
  • Negotiated brand co-investment, significantly reducing cost of capital
  • Partnered with local developer partner with strong ties to the local municipality
  • Partnered with GC with strong city relationships

DEVELOPMENT

  • 125 rooms
  • 2,000 SF retail
  • Upgraded bar experience
  • Efficient building footprint on a small site with minimal parking given TOD benefits
EQUITY INVESTED::

Approx. $10.5M

LEVERAGE:

59%

TARGETED RETURNS:

19.24 % project level IRR
2.63 equity multiple

KEY TAKEAWAYS:

» City incentives Public Private Partnership
» Brand incentives First Hyatt product in submarket
» Transit oriented development and creative capital stack

ACQUISITION AND SALE

Grapevine, TX

ACQUISITION

  • The Hampton Inn was purchase in December 2015 for $14.5M
  • The Comfort Suites was purchased in October 2016 for $9.0M
  • Strong location with direct access to the DFW airport and metroplex via Texas 121 highway

EXECUTION

  • Hampton Inn – conducted a full renovation
  • Comfort Suites – conducted a full renovation
  • Effectively utilized lending network to finance the acquisitions and renovations
  • Created operating synergies between properties

DISPOSITION

  • Sold both hotels as a portfolio for $30M in March 2018
  • Sold to a single buyer
  • Sold assets at 7.4% capitalization rate, produced strong investor returns
EQUITY INVESTED::

Approx. $6.3M

COMBINED RETURNS:

27.08% project level IRR
1.57x equity multiple

KEY TAKEAWAYS:

» Opportunistic acquisition
» Short hold period – renovation and monetization within 30 months

OPPORTUNISTIC PORTFOLIO ACQUISITION

La Quinta Portfolio

NewcrestImage began working with La Quinta and parent company Blackstone to craft the acquisition of 46 non-core assets acquired in two separate portfolios in 2013 and 2015, respectively.

La Quinta quickly needed to move the assets off the books, as the hotel flag was to be discontinued for all 46 non-core assets.

NewcrestImage began working with various franchise partners such as Quality Inn, Days Inn, Super 8, and Motel 6, to determine viable conversion opportunities for the assets.

With a tight timeline of 90-days, NewcrestImage successfully acquired and sold 44 of the 46-hotels to individual buyers while the transaction was in escrow.

46 HOTELS PURCHASED:

In two separate transactions in 2013 and 2015 representing total purchase price of almost $150 million.

44 HOTELS SOLD:

To over 10-individual buyers. More than 90% of the assets bought/sold simultaneously while in escrow.

2 HOTELS HELD:

For further real-estate upside.

SUCCESSFUL PORTFOLIO

Starwood
Portfolio Sale

DEVELOPMENT

  • 30 new-build hotels developed between 2008 and 2009
  • Included brands such as Holiday Inn Express, Hampton Inn & Suites and Courtyard by Marriott
  • Majority of the properties located in Texas

EXECUTION

  • A merger between Newcrest Management and Image Hospitality introduced unique strengths and talents
  • Effectively and efficiently operated hotels during the recession

DISPOSITION

  • Sold 20-property portfolio, representing 1,734 keys, in late 2012
  • Sold to Starwood Capital Group
  • One of the largest transactions of the year within the lodging sector.
EQUITY INVESTED:

Approx. $26.1M

EQUITY RETURNED:

Approx. $64.5M

AVG. HOLD PERIOD OF HOTELS:

4 Years

COMBINED RETURNS:

18.2% Realized IRR
2.47x equity multiple

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