Monarch Alternative Capital, New York and London, has acquired 10 full-service hospitality real estate assets located in four states in the United States for a total consideration of US$360 million. The properties were sold by Eagle Hospitality Real Estate Investment Trust as part of its bankruptcy process.
Monarch, with approximately US$9 billion of assets under management, has partnered with Hersha Hospitality Management to assist in the operations and management of the portfolio.
Monarch initially assisted Eagle Hospitality during the bankruptcy process in early 2021 by providing financing in the form of a US$100 million Debtor-in-Possession loan to help fund ongoing expenses related to the hotels and the bankruptcy case. In March, Monarch was also named as the stalking horse bidder for the 15 properties Eagle looked to sell, providing a floor bid for the Section 363 sale process. Following the auction, Monarch emerged as the ultimate buyer for 10 properties.
The portfolio consists of ten full-service hotels and resorts located in California, Colorado, Connecticut and Florida. The majority of the properties are located in California and Florida, with a focus on proximity to drive-to, leisure destinations including Disneyland and Disney World and accessibility to highly trafficked convention centers.
Monarch believes that the hotel properties will experience operating performance improvement as a result of the ongoing recovery of both leisure and business travel. In addition, continued investment by Monarch and improved management of the properties aims to further put the hotels on a path for growth.