Lehman, Gencom JV Sells Portfolio of 6 Hyatt Summerfield Suites Hotels
- Aug 14, 2008
Two years after acquiring a group of nine Bradford Home Suites Hotels and renovating them at a cost of $15 million, a partnership involving Gencom Group and Lehman Brothers Real Estate Partners has sold to RLJ Real Estate Fund III L.P. six of those properties, which had been re-branded as Hyatt Summerfield Suites hotels. The extended-stay lodging facilities are located in Texas, and Colorado. RLJ Fund III has tapped Aimbridge Hospitality to manage the three hotels located in the Dallas market, while White Lodging Services has been brought onboard to manage the properties in Austin and Houston, Tex., and Colorado Springs, Colo. With the disposition of the six hotels, Gencom and Lehman Brothers Real Estate wrap up a structured venture formed by the two entities in 2004 with the purchase of 50 percent of the Summerfield brand and six Summerfield properties from Wyndham International; the portfolio that includes the hotels sold to RLJ was acquired in 2006. Headquartered in Miami, Gencom is one of the top domestic and international investment and development firms in the country. The two-decade-old company specializes in the hospitality and residential real estate sectors. Its luxury and mixed-use projects, most of which carry the Ritz-Carlton flag, represent a total investment exceeding $6 billion, including those projects that are currently in the works. New York City-based Lehman Brothers Real Estate is a full-service real estate merchant banking concern operating two opportunistic equity funds accounting for an aggregate $4 billion of equity capital, and one mezzanine investment fund with $1.1 billion of equity capital. RLJ is an affiliate of Bethesda, Md.-based private hotel real estate investment company RLJ Development L.L.C., which has a portfolio of 121 hotels valued at approximately $2.6 billion. RLJ Fund II has $1.2 billion in equity commitments, which, with leverage, accounts for total purchasing power of $4 billion.