Blackstone Group LP (BX:US) took control of 13 hotels from Eagle Hospitality Properties Trust Inc. after the lodging company failed to find buyers for the portfolio and pay off debt held by the private-equity firm.
Eagle was unable to sell the properties at a price that would enable it to repay the debt, the company said in a statement today. An affiliate of Blackstone Real Estate Partners VII took ownership of substantially all of Eagle’s assets after yesterday’s deadline for a sale.
Blackstone, based in New York, has been expanding its hotel investments, with deals ranging from lower-priced chains to upscale properties. It purchased the Motel 6 chain for about $1.9 billion earlier this year, adding to investments such as Hilton Worldwide Inc. and a stake in Extended Stay America Inc. Last month, it agreed to a $1.2 billion deal for Apple REIT Six Inc., a real estate investment trust focused on hotels.
Eagle had reached a deal with Blackstone in September to delay foreclosure on the hotels if it was able to find a buyer. The properties include Embassy Suites hotels near the airports in Boston, Denver and Tampa, Florida; the Hyatt Regency in Rochester, New York; and the Cincinnati Landmark Marriott, according to the September statement.
The company said its limited remaining assets will be used to wind down operations, and it doesn’t expect to make any payments on its preferred shares or to any other equity holders.
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