COLUMBUS, Ohio: $400M Targeted for Broken Hotels
Rockbridge is targeting another $400M in its quest for more broken hotels (the company's sixth hospitality fund), according to filings with the Securities and Exchange Commission. CEO Jim Merkel (who wasn't able to talk specifics on the filing since he's in a quiet period) tells us contrary to expectations, it's actually easier now to find distressed or broken hotels than it was in the recession. (More broken hotels? Motley Crue is touring again.) Back then, sellers weren't willing to part with products at a loss. There's still a significant amount of supply that is under-positioned and under-renovated as a result of not getting capital for the last five years, he says.
Most recently, Rockbridge purchased Aqua Waikiki Wave Hotel in Honolulu with plans to turn its operations around. And among its 11 deals last year, it also purchased and is renovating the 99-room Canterbury Hotel in Downtown Indianapolis with plans to reopen it as a four-star Le Meridien hotel this year. “This is a typical opportunity for us,” Jim says. “We're in a market where you can sell stabilized assets for a good price and you can buy broken assets for a fair price.”
