Mr. Zell Buys Again…
I admit it, I live vicariously through Mr.Sam Zell. Here’s one of his latest acquitions with Hilton Worldwide.
…CHICAGO-The sale is now confirmed: Sam Zell’s firm Equity Group Investments and Waldorf Astoria Hotels & Resorts, an affiliate of Hilton Worldwide, are buying the 188-room Elysian Hotel Chicago. The reported sale price is $95 million…
…The new ownership plans to rebrand the property in Chicago’s Gold Coast neighborhood as the Waldorf Astoria Chicago, opening Feb. 1. The 60-floor property has only been open two years, and includes 51 condos. Rooms at the hotel currently go for $475-$1,650 per night...
…Equity Group Investments made its investment through the Zell Credit Opportunities Fund, which was established to focus on the recapitalization of over-leveraged assets…(1)
I always learn something when I have intel like this. Mr. Zell gets with Hilton Worldwide as a partner. Ok, you buy a high-end hotel, find a high-end partner. Makes a lot of sense to me. Zell has a said in an interview last month he was looking for distressed or over leveraged assets. I’d love to see the nuts and bolts of this deal. Zell and Hilton have a specific business plan for this property. I can’t draw a conclusion yet but, this property is only 2 years old. I’ll keep an eye out for a pattern regarding age of the properties.
My advice to newbie’s is pick a successful investor like Zell and follow their deals. Look for any ideas or patterns in deal making, finance, business planning, marketing and legal.
Figure a way to incorporate those patterns to your investing process
(1)
http://www.globest.com/news/2016_2046/chicago/315842-1.html?ET=globest:e28065:302374a:&st=email
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