The Carlyle Group and lodging REIT MHI Hospitality have completed the $74-million (€54.3 million) joint acquisition of the Crowne Plaza Resort Hollywood Beach in Hollywood, Florida from developer MCZ/Centrum. The resort is the first acquisition for the joint venture.
“We congratulate MHI Hospitality Corporation on their ability to source this attractive, off-market transaction,” Robert Stuckey, managing director of The Carlyle Group and head of Carlyle Realty Partners, said in a statement. “We strive to support our joint venture partners with the capital they need to create value.”
The 311-room resort, located on the South Florida coast between the Intracoastal Waterway and the Atlantic Ocean, has approximately 12,000 square feet of meeting space. The property also features a retail food and beverage outlet, an outdoor pool and valet parking.
Carlyle and MHI are also leasing an adjacent three-acre hotel development site owned by MCZ/Centrum with an option to purchase the site during the four year lease term.
“With its scale, location and value-enhancing potential, the Crowne Plaza Resort Hollywood Beach is a significant acquisition for our Company and directly fits our venture objectives with The Carlyle Group,” Andrew Sims, president and chief executive officer of MHI, said in the statement. “We are delighted to announce this first investment in our partnership and look forward to a productive ongoing collaboration.”
In April, Carlyle committed $100 million to a joint venture with MHI to acquire and develop hotel assets. MHI will identify investment opportunities for the venture, while Carlyle’s latest US property fund, Carlyle Realty Partners V, will commit equity to the projects.
Last month, the firm acquired four hotels in the San Francisco Bay area. The portfolio included the 309-room Crowne Plaza Hotel near San Francisco International airport, the 230-room Holiday Inn in northeast Sacramento, the 198-room Holiday Inn Concord and the 155-room Holiday Inn Walnut Creek.
The Crowne Plaza Resort Hollywood Beach is expected to open in the fall of 2007.