Ivy Day Spa – Mother’s Day Giveaway – Banner
It is forecast to be Partly Cloudy at 7:00 PM PDT on May 05, 2015
Partly Cloudy
Home » Santa Clarita News » Embassy Suites Sold to Cerberus Capital

Embassy Suites Sold to Cerberus Capital

embassysuites102711By Leon Worden/SCVNEWS.com

Cerberus Capital Management, the New York-based private equity firm that once owned the commercial property assets of The Newhall Land and Farming Co., has purchased the Embassy Suites hotel in Valencia and 63 other hotels across the country from Innkeepers USA Trust of southern Florida.

Cerberus made the purchase in partnership with Chatham Lodging Trust, a Florida-based real estate investment trust.

Don’t miss a thing. Get breaking news alerts sent directly to your inbox


According to Chatham, which holds a 10.3 percent interest, the gross purchase price for all 64 hotels was $1.02 billion, including the assumption of approximately $675 million of mortgage debt on 45 of the hotels. The other 19 hotels are unencumbered.

The acuisition involves 8,329 rooms at a price of roughly $118,000 per room.

Chatham said it will provide asset management services to the joint venture, and all operating costs will be paid by the joint venture.

All but one hotel will continue to be managed by Island Hospitality Management, a hotel management company that is 90 percent owned by Jeffrey H. Fisher, Chatham’s chief executive officer and president.

Chatham currently owns 18 hotels with an aggregate of 2,414 rooms in 10 states and the District of Columbia.

Chaired by former Bush Treasury Secretary John W. Snow, Cerberus is one of the largest private investment companies in the United States and made headlines when it purchased and then liquidated a controlling interest in Chrysler. It still controls the former GMAC.

In 2004, Cerberus bought LNR, the commercial property investment company that had spun off from Miami-based Lennar Corp. At the time, Lennar and LNR each owned half of Newhall Land through a holding company, LandSource Communities Development LLC, which later declared bankruptcy. Newhall Land was the developer of the Valencia Industrial Center where the Embassy Suites hotel is located.

Embassy Suites Sold to Cerberus Capital

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

About KHTS AM 1220

Academy Swim Club – News Banner
AV Party Rental – News Banner
Action Family Counseling – News Banner
Hugo Naturals – News Banner
Beyond Harmony – News Banner
College Of The Canyons – News Banner
All American Bail Bonds – News Banner
Academy Swim Club – Tile
Galpin Motors – Tile
Broadscast – Tile
Patterson’s Collision Center – Tile
San Diego Zoo – Generic – Tile
Adage IT – Tile