Dealmaker: Hilco Real Estate Closes $27M in Hotel Transactions

Hilco Real Estate LLC, Northbrook, Ill., brokered hotel sales in Alabama and Tennessee totaling $27 million.

In Huntsville, Ala., Hilco sold a newly constructed 57,000-square-foot, 98-Room Holiday Inn Express Hotel for Wealth Hospitality Group, Ridgeland, Miss.

Occupying 2.6 acres, the four-story hotel sold to MH Hospitality, Omaha, Neb., for $13.9 million, or $142,346 per key. The property includes two elevators, a 1,200-square-foot meeting space, outdoor pool and fitness center.

Huntsville has become Alabama’s largest city with a population approaching 215,000. Located close to the U.S. Space & Rocket Center, Cummings Research Park (the second-largest research park in the United States) and the University of Alabama-Huntsville, the hotel is five miles from downtown Huntsville and 10 miles from Huntsville International Airport.

Keith Worsham, Senior Vice President of Hilco Real Estate’s national hotels team, said the recently delivered property represented a “turnkey opportunity” in a city near major interstates, colleges and local attractions.

Hilco Real Estate also sold a 101,000-square-foot Residence Inn by Marriott hotel in Jackson, Tenn. for Wealth Hospitality Group. The four-story, 92-room hotel on three acres sold to 1031 exchange buyer Ridgeway Investment Management, San Marino, Calif., for $13.1 million, or $142,391 per key.

Jackson is in western Tennessee, midway between Memphis and Nashville. The total population has grown 12 percent since the 2000 census to 67,000, making it the eighth-largest city in Tennessee.