Canadian real estate investor Brasswater has acquired two Hampton Inn-branded hotels in South Florida's Palm Beach County. Official land registry records reveal that the Montreal-based company paid a total of more than 48 million US dollars for the portfolio to the previous owner, Hospitality Investors Trust.
The larger share by volume is the Hampton Inn & Suites Boynton Beach at 1475 Gateway Boulevard, roughly one mile west of Interstate 95. Brasswater paid at least 29 million US dollars for the 164-room property built in 1997. The asset features a gross floor area of 102,476 square feet and sits on a plot of around three acres.
Transaction structure and acquisition financing
The second part of the acquisition comprises the Hampton Inn West Palm Beach Florida Turnpike at 2025 Vista Parkway. The investor paid more than 19 million US dollars for the 110-room property. The 68,800-square-foot building is situated west of the Florida Turnpike, close to Okeechobee Boulevard, and was completed in 2001 on a 2.4-acre plot.
The actual total consideration for the takeover is likely to exceed the amounts cited in the deeds. Official documents typically reflect only the pure real estate value, whilst furniture, fixtures, equipment and the ongoing operations of the Hilton-branded properties are valued separately. To finance the overall package, New York lender Axonic Capital provided a loan volume of 42.2 million US dollars.
Portfolio streamlining at Hospitality Investors Trust
The vendor, Hospitality Investors Trust, based in Fairfax in the state of Virginia, is gradually divesting several properties across South Florida. The group had acquired the two now sold hotels in 2015 for a combined 43.6 million US dollars. Back in June, the group sold a 117-room Hampton Inn in Palm Beach Gardens for 14.3 million US dollars, followed by the disposal of another 106-room property in Deerfield Beach for 9.8 million US dollars.
- —Hampton Inn & Suites Boynton Beach: 164 rooms sold for at least 29 million dollars
- —Hampton Inn West Palm Beach Florida Turnpike: 110 rooms acquired for more than 19 million dollars
- —Axonic Capital structures acquisition loan of 42.2 million dollars for both properties
- —Hospitality Investors Trust previously divested two further properties in Palm Beach Gardens and Deerfield Beach
The recent transactions demonstrate sustained liquidity for well-established hotel assets in the Palm Beach region, as institutional market participants strategically restructure their portfolios.
