Skyline lands $90M for Marriott portfolio buy

Skyline lands $90M for Marriott portfolio buy

Thursday, September 14, 2017

Courtyard Marriott 4455 Metro Parkway (Credit: Marriott)

Skyline Investments is in contract for $90 million in funding to close on the purchase of 13 Courtyard Marriott hotels in the United States, contingent on several conditions. 

Skyline, a publicly traded company in Israel, announced last month it would be paying $135 million for the 1,900-room portfolio, located in nine states, from Illinois to Florida. 

In addition to the $90 million, the lender, which was identified only as a large U.S. bank, will also provide a credit line of up to $31 million for the first four years after the acquisition, according to documents filed on the Tel Aviv Stock Exchange. 

Skyline is negotiating a deal to operate under the Courtyard Marriott brand for 20 years, and the hotels will be managed by Aimbridge Hospitality. 

Included in the portfolio is the 149-key Courtyard Marriott at 4455 Metro Parkway in Fort Myers. According to the documents, the net operating income at the hotel increased from $649,000 in 2014 to $1 million in 2016, a 67 percent increase. Overall, the NOI of the portfolio grew 11 percent to $14.5 million between 2014 and 2016. 

Skyline is controlled by Mishorim Development and owns six additional properties in the U.S. and Canada.

Source: The Real Deal