August 1, 2012 · 0 Comments
August 1, 2012 – (www.hospitalitybusinessnews.com) CBRE Hotels is pleased to offer the opportunity to purchase an exceptional portfolio of seven new select-service hotels in the United States anchored by a significant New York asset. Located in high-performing markets, this unique portfolio of top quality branded hotels has an average age of two and a half years, impressive financial performance and offers the opportunity to build a relationship with OTO Development, an industry leader known in the U.S. for operational and development expertise. Opportunities to acquire portfolios of this quality and scale are rare. Located in strategic east and west coast markets, the OTO portfolio is comprised of 1,075 hotel rooms; 693 currently in operation and 382 under construction.
Five of the seven properties are located in top ten U.S. RevPAR markets: New York, Washington DC, San Diego, Los Angeles, and Long Island. The other two properties are well located in markets with unique demand characteristics (Tampa, FL and Erie, PA).
All seven hotels in the OTO Portfolio are ideally positioned with Marriott, Hilton, and Hyatt select-service flags.
OTO, led by professionals with at least 20 years of experience in their respective fields, specializes in development and management of select-service hotels. OTO’s operational expertise and depth of market knowledge is best evidenced by the financial performance of the portfolio, which boasts an incredible 39% average NOI margin and an average RevPAR index of nearly 120%.
The high barrier portfolio was many years in the making including locating, entitling, constructing, opening and stabilizing each of the hotels. Such a portfolio is not easily duplicated.
Kevin Mallory, Senior Managing Director of CBRE Hotels for the Americas, noted, “The market is starved for portfolios of this calibre. The OTO Portfolio is comprised of institutional quality properties, top brands, and is paired with one of the top developer/operators in the sector. This is a unique investment opportunity in U.S. markets that are positioned for significant growth going forward.”