Investcorp acquires US hotel property
Manama, June 20, 2011
Investcorp, the Bahrain-based alternative investment firm, said it has acquired Residence Inn Manhattan Beach, a 176-room Marriott hotel in Los Angeles, California.
Residence Inn is the Marriott hotel group's brand of extended stay hotels, a type of lodging that has more home-like amenities and is popular with business travellers on extended assignments or undergoing relocation.
Investcorp has agreed a new franchise agreement with Marriott, and will embark on a capital investment plan to renovate and upgrade the property.
The total consideration for the acquisition was approximately $40 million including the reserve for this renovation and the purchase has been structured to be Sharia compliant.
'We are very pleased to be adding Residence Inn Manhattan Beach to our real estate hospitality portfolio,' said Investcorp Gulf business president Mohammed Al Shroogi.
'The transaction reflects Investcorp's focus on assets that have strong fundamentals, such as a good location, stable operations and favourable outlook.
'The property's location is excellent, in the dense coastal Los Angeles market, minutes away from the beach and with corporate demand drawn from the nearby aerospace and oil industries.
'Its annual occupancy rates have consistently outperformed the market over the last five years.'-TradeArabia News Service