Wednesday, January 8, 2014

Omni Hotels and Resorts Acquires the Montelucia from KSL Capital Partners

VIZZDA—January 8th, 2013 — The Montelucia Resort in Paradise Valley has new ownership following the sale of the 293-key hotel property for $138.75m or nearly half a million per key. The buyer—Omni Hotels and Resorts of Dallas, TX—paid cash for the property and has already re-branded it as the Omni Scottsdale Resort & Spa at Montelucia in promotional materials and on its website.
The seller—private equity firm KSL Capital Partners—acquired the Montelucia in May of 2011 from the European bank Eurohypo AG for $105,052,220. While no debt was recorded at the time of sale, KSL secured $65m in new debt with Wells Fargo later that year and eventually increased the principal balance to $100m. Prior to that sale, Eurohypo took possession of the resort following foreclosure on an $180m note with the prior owners of the resort in January of 2011.
The resorts 293 rooms are comprised of 253 guestrooms, 38 suites and 2 presidential suites. The property features three pools as well as the Joya Spa. This is the sixth luxury hospitality property acquired by Omni from KSL in as many months, following the July 2013 acquisition of five resorts in Texas, California, North Carolina and Virginia totaling 2,362 guestrooms. The $138.75m sales price represents a 12.2% annualized return, though refinancing likely increased returns to KSL substantially.

Paul Dionne
Director of Analytics

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