Tigard hotel and others to see $50 million in redevelopment
Tigards largest hotel will soon be under new ownership.
Embassy Suites at Washington Square is one of eight hotels across the country which will be sold to a New York-based real estate firm early next year.
The hotels are currently owned by Windsor Capital Group, but AWH Partners LLC is under contract to purchase the hotels in January.
The price tag for the eight hotels was not disclosed, but sources close to the deal told GlobeSt.com that AWH paid about $170 million for the portfolio.
AWH, a privately held New York real estate firm, announced the purchase from Windsor last week.
The Tigard location was the only Oregon hotel in the portfolio. Others include Embassy Suites in Bellevue and Lynnwood, Wash., as well as Denver and El Paso, and suburbs near Cincinnati and Detroit.
According to AWH, buying the eight hotels involved working through a complicated bankruptcy process involving a quick, all-cash, no-contingency closing.
In 2012, the eight hotels filed for Chapter 11 bankruptcy protection. Windsor Capital Groups owner Patrick Nesbitt said the hotels were looking for protection from creditors while Windsor restructures $175 million in debt it owed to US Bank.
"This portfolio of well-located and premium-branded assets --- with multiple parallel sales processes and a complicated bankruptcy --- attracted the most sophisticated and well-capitalized opportunistic investors," said Chad Cooley, a principal of AWH Partners, in a statement. "Given the multi-dimensional nature of the diligence required for the investment, AWH gained an advantage by moving very quickly."
The eight hotels can expect to see $50 million in upgrades over the next two years, the company announced.
"This portfolio represents an opportunity for AWH to leverage its core strengths of acquiring, operating and redeveloping undercapitalized assets to generate out-sized returns, said Jon Rosenfeld, a principal of AWH Partners.
In the past four years, AWH has completed more than $400 million of hotel investments, and more than $100 million in hotel redevelopment.
Spire Hospitality, the hotel management arm of AWH, will manage the eight hotels.