Hunter Brokers Three Hotel Transactions
DECEMBER 2, 2008. Hunter Realty, a leading national hotel investment services firm, today announced they successfully closed three separate transactions valued at more than $28 million, all in the past week. The three properties include a Courtyard by Marriott in Bristol, Va., a Comfort Inn & Suites in Birmingham, Ala. and a Best Western in Atlanta, Ga. Hunter Realty was both the listing and selling agent in all three transactions.
"It is well known that the hotel industry is facing both tough economic times and difficult financial markets," said Lee Hunter, chief operating officer of Hunter Realty. "However, despite the flood of negative economic news, transactions are and will continue to close, especially in the under $15 million-sized deals."
Multiple financing arrangements were used to consummate the three transactions, reflecting the current economic climate. One was a SBA loan, one was a conventional loan in which the owner had a strong relationship with the lender and the third was cash above an assumed CMBS loan. "Financing is certainly more difficult and requires greater equity than a year ago, but the economics of these transactions were compelling for both the buyers and sellers," said Teague Hunter, president. "Strong banking relationships, a proven track record and creative approaches will certainly pay off in this environment.
"There are several factors favoring buyers in the current environment," he added. "First, capitalization rates are moving upward. Also, with significant new cash being poured into the economy by the government, inflation is likely to affect values in the future. And, with the likelihood of higher tax rates ahead, the tax advantages of owning real estate will again become meaningful."
The five-story Courtyard by Marriott in Bristol, Va., built in 2003, was purchased by Apple Nine SPE Bristol, Inc., and the two-story Best Western in Atlanta was purchased by Kennesaw Hospitality, LLC. The Comfort Inn & Suites, located in the heart of Birmingham, was purchased by DR & MV Hospitality, LLC.
"Despite a decelerating economy throughout the year, Hunter expects to finish strong, in both number of properties and dollar volume," said Bob Hunter, CEO. "We believe many more properties will come to market in 2009. Our recent move to new larger offices underscores our confidence in the hotel real estate market, and we look forward to a very active year in 2009."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
