HFF Closes $31.2 Million Sale of Sheraton Orlando North Hotel

ORLANDO, FL. July 3, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $31.2 million sale of the Sheraton Orlando North Hotel, a 389-room, full-service hotel in the Orlando-area community of Maitland, Florida.

HFF marketed the property on behalf of the seller, a partnership between Värde Partners, Interstate Hotels Corporation and Waramaug Hospitality Asset Management. Cambridge Landmark purchased the asset free and clear of debt and unencumbered of management. HFF was involved in a previous financing of this property in 2015 as part of a $110 million portfolio financing on seven full-service hotel assets in five states.

Located at 600 North Lake Destiny Road, the Sheraton Orlando North Hotel is at the intersection of Interstate 4 and Maitland Boulevard 3.1 miles from Winter Park and 8.3 miles from downtown Orlando. The hotel is in the Maitland submarket proximate to 7.4 million square feet of office space and situated in the 226-acre Maitland Center Office Park, which is home to more than 400 businesses, including Worldwide Brands, Fidelity, FedEx and Charles Schwab. The hotel features more than 15,000 square feet of meeting space; an outdoor pool with hot tub and resort-style water feature; fitness center; business center; on-site car rental services; Sheraton Club Lounge and several food and beverage outlets, An Tobar Irish pub-style restaurant Grande Café in the atrium lobby, Celestial Lounge and Link @ Sheraton Café. The new owners will invest $4 million to upgrade the rooms and common areas of the property.

The HFF investment sales team representing the seller was led by senior managing director Michael Weinberg and associate director Preston Reid.

“Orlando’s low supply growth over the past seven or eight years combined with unparalleled demand for room nights, including the 68 million visitors in 2016, have led to strong financial performance for most assets in our market,” Weinberg said. “Like in this transaction, a number of the groups we have sold assets to or raised equity capital from over the past few years in Central Florida have been from oversees sources. I see this trend continuing to grow due to the global awareness and connectivity of Orlando.”

HFF’s Hotel Team continues to be extremely active throughout the state of Florida, having closed 52 hotel-related transactions in the last 24 months, including Naples Grande Beach Resort, Sheraton Sand Key Resort, Sheraton Tampa Riverwalk Hotel, Hilton Key Largo and, locally in Central Florida, Embassy Suites Downtown Orlando, Hampton Inn Daytona Beach/Beachfront, Courtyard Lake Buena Vista and Holiday Inn Orlando SW – Celebration Area.

About Värde Partners

Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world. Learn more at varde.com.

About Interstate Hotels & Resorts

Interstate Hotels & Resorts is the leading U.S.-based global hotel management company, operating branded full- and select-service hotels and resorts, convention centers and independent hotels worldwide. Interstate Hotels & Resorts’ portfolio of 446 hotels with 82,065 rooms including signed hotels under development or construction spans 10 countries. For more information, please visit interstatehotels.com. Connect with Interstate at linkedin.com/company/interstate-hotels-resorts, facebook.com/InterstateHotels and interstatehotels.com/careers.

About Waramaug Hospitality

Waramaug Hospitality is a privately held investment group focused on acquiring legacy branded assets throughout the United States. Waramaug utilizes its wealth of resources to create a track record in successfully rebranding, repositioning and renovating assets to reach their full potential and become market leaders. The company’s portfolio includes flagged and independent full service hotels and resorts, as well as select service hotels under premium brands. For more information, visit waramaughospitality.com.

About Cambridge Landmark

Cambridge Landmark is a long-term investment firm focused on the acquisition of hospitality assets. The company looks to acquire primarily upper midscale and upscale hotels that have franchise agreements with the major hotel companies such as Marriott, Hyatt, Hilton and IHG. The firm’s principals co-invest a significant amount of equity in every single deal alongside its limited partners.

About HFF

Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

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