Blackstone Is Said to Begin Marketing 15 U.S. Hotel Properties
(Bloomberg) -- Blackstone Group LP is in the early stages of marketing a group of select-service hotels, according to people with knowledge of the matter.
A sale of about 15 U.S. properties would be part of the ordinary course of managing a large portfolio, said one of the people, who asked not to be identified because the process is confidential. While it’s unclear how much the properties may fetch, American Hotel Income Properties REIT LP paid $407.4 million for 18 premium-branded select-service hotels last June. A Blackstone representative declined to comment on plans to sell the hotels.
The New York-based alternative-asset manager has amassed more than 100 select-service hotels in the U.S., anchored by its purchase of 47 extended-stay Residence Inn and Homewood Suites hotels in 2014 for roughly $800 million. Select-service hotels are usually defined as properties with limited food-and-beverage offerings and amenities. They’re appealing to investors partly because they demand much lower capital expenditures, creating the potential for higher returns.
Blackstone has an affinity for the select-service market. Last year, it made a $24-a-share offer to acquire RLJ Lodging Trust, one of the largest owners of premium select-service hotels, according to a person with knowledge of the matter. The bid was ultimately rebuffed, and RLJ went on to acquire FelCor Lodging Trust Inc., a move that increased its portfolio of full-service hotels.
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