JMBM’s Global Hospitality Group® Negotiates the Acquisition of Sheraton Chapel Hill Hotel for Richfield Hospitality Group
Hotel lawyers complete another hotel acquisition and hotel financing
LOS ANGELES — The Global Hospitality Group® of Jeffer Mangels Butler & Mitchell LLP (JMBM) represented Richfield Hospitality Group, a leading hotel management company, in a joint venture with Shelbourne Falcon Investors, a real estate and private investment partnership, to acquire the 168-room Sheraton Chapel Hill Hotel in North Carolina for an undisclosed price.
"This acquisition is in keeping with Richfield’s strategy of aggressively pursuing off-market hotel properties in key markets with good potential for revenue growth. Our access to capital and our excellent relationships with hotel brands and joint venture partners gives us the ability to move quickly to execute transactions, and we intend to make use of those advantages in seeking more hotel acquisition opportunities," said Greg Mount, president of Richfield Hospitality.
The hotel is adjacent to the University of North Carolina campus. This is the third acquisition of a university-related hotel by Richfield. In the joint venture structure between the two companies, Richfield, in addition to equity, provided debt financing for the transaction. Richfield will also manage the hotel.
"The transaction involved the acquisition of loans secured by the property, with a concurrent agreement to acquire title to the property from the hotel owner," said JMBM hotel lawyer Catherine DeBono Holmes. "It also involved negotiations with the existing franchisor, tax authorities and other third parties having interests in the property", said JMBM hotel lawyer David Sudeck. Holmes, Sudeck and Jim Butler, Chairman of JMBM’s Global Hospitality Group®, represented Richfield in the transaction.
About JMBM’s Global Hospitality Group®
JMBM’s Global Hospitality Group® represents hotel owners, developers, investors and lenders. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,250 properties all over the world. For more information, see www.HotelLawBlog.com.
About Richfield Hospitality
Richfield Hospitality, Inc. is a leading hotel management company with a premier track record of maximizing profitability and improving asset values for hotel owners. Richfield and its affiliates offer proven solutions and expertise to approximately 500 hotels and resorts. Richfield is part of City Developments Limited, one of the world’s largest real estate, hotel investment and technology conglomerates with a market capitalization exceeding US$6 billion.
Jim Butler, Chairman
JMBM Global Hospitality Group®