Media Coverage
Hospitality Investment Group Acquires 25 Extended Stay America Locations and Boston’s Beacon Hotel
Source: Law360, Globe St.
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
03.07.18
Pillsbury client Three Wall Capital announced last week that it has completed a $114 million acquisition of 25 Extended Stay America (ESA) hotels from real estate investment trust (REIT) ESH Hospitality Inc. The hotels are located across Ohio, Kentucky, Indiana and Texas and will continue to be managed by Charlotte-based ESA. In addition to acquiring the hotels, Three Wall Capital will seek to develop 15 more ESA hotels over seven years, the companies said in a statement.
According to Law360, ESA is the biggest integrated hotel owner and operator in North America, and ESH Hospitality is the largest lodging REIT based on unit and room count. ESH Hospitality owns 599 hotels and close to 66,000 rooms in the United States. Three Wall Capital was founded in 2008 by a former Lehman Brothers managing director and has completed nearly $600 million in principal investment transactions. The ESA transaction was structured as a joint venture with an investor family office, with financing provided by a prominent bank. The financing is expected to be a top-five loan in a securitization coming out in March.
A Pillsbury team led by New York Real Estate partner Paul Shapses represented Three Wall Capital in the transaction. Also on the Pillsbury team were Real Estate partner Caroline Harcourt assisting with financing documentation; special counsel Ivan Mitev advising on tax issues; and associates Christian Scarlett and Chris Fennell, senior law clerk Alexander Walker and paralegal Jasmine Gurreri, on acquisition, financing and joint venture matters.
Pillsbury also advised Three Wall in its recent $59.7 million acquisition of Washington, DC’s Beacon Hotel, in a joint venture with Boston-based Rockpoint Fund V Acquisitions and a hotel management company. The 199-room Beacon is located at the intersection of 17th Street and Rhode Island Avenue. Globe St. reports that the new owner will overhaul the hotel’s rooms, food and beverage offerings and other amenities. Shapses and associate Nik Holtan worked on the Pillsbury team advising Three Wall in the Beacon transaction; also on the team were Tax partners Brian Blum and Ivan Mitev, and Executive Compensation & Benefits partner Peter Hunt.