Pinnacle Hotel Management Sells 15 Hotels to Blackstone in $203 Million Deal

  • Blackstone Group
  • 07.17.15
The Blackstone Group acquired a 15-hotel, select-service portfolio comprised of Marriott and Hilton-branded hotels from Pinnacle Hotel Management for $203 million.

Nine of the hotel transactions already have closed, with the remaining six scheduled to close in November. Hunter Hotel Advisors represented Pinnacle Hotel Management (PHM) in the transaction.
"At this point in the cycle, premium, select-service portfolios are scarce, allowing Pinnacle to take advantage of prices hovering around all-time highs," said Teague Hunter, president of Hunter Hotel Advisors. "Nine months in the making, this complex transaction served the future growth plans of both parties."

The 15 hotels are concentrated in dynamic growth markets along the Eastern Seaboard throughout New England, the Mid-Atlantic states, Florida and California.

"The sale of this portfolio allows us to recycle capital while retaining long-term management agreements," said Ron Franklin, PHM president/principal.

"We will use the proceeds to reinvest in new assets that can benefit from our ability to add value through investment, repositioning and strong management. We look forward to expanding on our relationship with Blackstone," said Steve Fairbanks, PHM principal and CIO.

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