Clarion Partners Sells Hotel Portfolio for $135M

The collection of Courtyard by Marriott properties, totaling more than 1,900 guestrooms across nine states, is now under the ownership of Toronto-based Skyline Investments.

Blake Lyon, Skyline Investments
Blake Lyon, Skyline Investments

Clarion Partners LLC has sold a group of 13 Courtyard by Marriott hotels to Skyline Investments in a transaction valued at $135 million. Both parties relied on HFF for assistance in the deal; the commercial real estate and capital markets services provider marketed the portfolio on Clarion’s behalf, and arranged acquisition financing for Toronto-based Skyline.

Skyline gets quite a diverse footprint with the purchase of the 1,913-key hotel collection. Spanning nine states, the select-service properties, built between 1985 and 1989, are located in Birmingham and Huntsville, Ala.; Little Rock, Ark.; Tucson, Ariz.; Fort Myers, Fla.; Chicago; Lexington, Ky.; Dayton and Toledo, Ohio; Oklahoma City; and Northern Virginia.

“This is an important step in the implementation of Skyline’s new business strategy to increase the number of income-producing assets, diversify the Company’s sources of income, improve the cash flow and reduce part of the land component in the balance sheet,” Blake Lyon, CEO of Skyline Investments, said in a prepared statement.

The portfolio had a great run under Clarion’s ownership. In 2016, the 13 properties generated revenue totaling approximately $51.1 million.

After HFF secured Skyline as a buyer for the Courtyard hotels, the firm paved the way for the investment company’s purchase of the properties by arranging an $89.5 million, five-year, floating-rate acquisition loan through a global investment bank. HFF performed a similar service for Clarion one year ago, securing $200 million in financing for Clarion’s acquisition of a nine-property portfolio of multifamily, industrial and retail assets.

Photo courtesy of Skyline Investments