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Jones Lang LaSalle Closes the Sale of Kansas-based Lodging Enterprises, LLC to Canadian REIT
ATLANTA, Feb. 28, 2013 - Jones Lang LaSalle’s Hotels & Hospitality Group today announced the firm has closed the sale of Kansas-based Lodging Enterprises, LLC to American Hotel Income Properties REIT LP (AHIP), led by Canadian hotel veteran Rob O’Neill of Vancouver, B.C. The purchase of Lodging Enterprises, LLC, which owns and operates 32 proprietary branded hotels in 19 states and 24 proprietary branded diners and also owns the Oak Tree Inn and Penny’s Diners brands, is the Canadian REIT’s first acquisition in the United States. The sale also includes a large development pipeline of hotels under construction and long-term guaranteed room night contracts with three of the largest Class I U.S. freight railroad companies.
Managing Directors Al Calhoun and Mark Fair led the Jones Lang LaSalle team on this transaction.
Rob O’Neill CEO of AHIP commented, “Jones Lang LaSalle and their team provided complete and detailed information on a timely basis that assisted in facilitating this complex cross-border public market transaction. Their professionalism was truly appreciated.”
“Through a competitive bidding process, we were able to secure excellent terms of sale for Lodging Enterprises, LLC. The company’s wide-ranging portfolio, including a strong development pipeline, made it an exceptional acquisition opportunity for AHIP and allows the Canadian REIT to make an immediate impact in the U.S. market,” according to Calhoun.
Fair added, “The limited service hotel market remains a top target for both domestic and international investors that are seeking flexibility, resiliency and strong returns in their portfolios. We expect a robust select service transaction market in the year ahead, as cap rates continue to trend downward and buy sentiment remains high.”
The market-leading select service division of Jones Lang LaSalle’s Hotels & Hospitality Group focuses on the transaction needs of clients in the mid-tier segment of the hotel industry, ranging from $5 to $20 million in asset value. In 2012 the firm completed more than $775 million of select service transactions in the United States, representing more than 10,500 rooms.
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s more than 265 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US$25 billion, while also completing approximately 4,000 advisory and valuation assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.For more news, videos and research from Jones Lang LaSalle’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s app from the App Store.
For more information on this transaction read AHIP's press release here: http://www.ahipreit.com/news-releases/american-hotel-income-properties-reit-lp-completes-its-initial-public-offering
About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet. Its investment management business, LaSalle Investment Management, has $47.0 billion of real estate assets under management. For further information, visit www.jll.com.
About Lodging Enterprises, LLCLodging Enterprises, LLC is a specialized hotel management and operating company that provides lodging services to employees of Class I railroad operators. The company owns and operates more than 30 lodging facilities in 19 states and currently manages approximately 2,500 rooms while employing a staff of more than 900 full and part-time hospitality professionals.
Strategically located near railroad hubs and switching terminals, the majority of hotels are operated under the company’s proprietary Oak Tree Inn brand name. The hotels provide convenient lodging services customized to meet the high demands of railroad employees, and accommodates the casual or business traveler as well. To learn more about the design features of the Oak Tree Inn visit the company’s Railroad Benefits web page.
About American Hotel Income Properties REIT LP AHIP has been formed to indirectly own and acquire hotel properties in the United States. The net proceeds from its initial public offering are being used primarily to indirectly acquire 32 hotel properties located in 19 U.S. states. AHIP's long-term objectives are to: (i) generate stable and growing cash distributions from hotel properties substantially in the United States ; (ii) enhance the value of its assets and maximize the long-term value of the hotel properties through active management; and (iii) expand its asset base and increase its Adjusted Funds From Operations ("AFFO") per Unit through an accretive acquisition program, participation in strategic development opportunities and improvements to the properties through targeted value-added capital expenditure programs.
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