Toronto-based Skyline Investments has completed the sale of 11 Courtyard by Marriott hotels in the U.S. The company had previously tried to sell its entire portfolio of U.S. hotels earlier this year. The properties were sold to to third parties for $101 million. Other terms were not disclosed.
The 11 Courtyard Hotels are:
- Chicago Arlington Heights
- Chicago Deerfield
- Chicago Rockford
- Birmingham (Ala.) Hoover
- Huntsville (Ala.) University Drive
- Courtyard Manassas (Va.) Battlefield Park
- Courtyard Lexington (Ky.) North
- Courtyard Dayton (Ohio) Miamisburg
- Courtyard Little Rock (Ark.)
- Courtyard Oklahoma City
- Courtyard Toledo (Ohio) Holland
The transaction was brokered by Marcus & Millichap with Ebrahim Valliani of the Miller-Gomes Hotel Team representing Skyline.
The company has contracted with another financier for a $20 million credit facility, net of a $2.0 million interest reserve held by the financier, whereby the company pledged its rights in Courtyard Tucson and Ft. Myers hotels. The loan will be for a period of 12 months and will be repaid at the end of the period. The company will have the option to make early repayment of the loan without penalty.
The company fully repaid its two existing loans, which were secured against the sold 11 hotels in the approximate amount of $106 million from the proceeds of the completion of the sale of the hotels and the credit facility as aforesaid. The company estimates that the net cash flow from the transactions listed above, after settlement of all transaction costs and working capital amounts related to the 11 hotels sold, will be approximately $8 million. The company will record a loss of approximately $8.5 million in its financial statements (without taking into account the tax effects that are still being examined).
Following the completion of the transaction, the company retained ownership of three Courtyard properties: Ft. Myers, Ithaca (N.Y.) and Tucson (Ariz.), which are up for sale.