Toronto-based Skyline Investments has placed another four of its U.S. hotels under contract for sale.
Skyline tried unsuccessfully earlier this year to sell its entire portfolio of 15 U.S. hotels. It has now reached piecemeal deals to sell a dozen of them.
This past week, Skyline signed an agreement for the sale of four Courtyard by Marriott hotels: the 146-room Courtyard Dayton Miamisburg in Miamisburg, Ohio; the 149-room Courtyard Little Rock West in Little Rock, Arkansas; the 149-room Courtyard Oklahoma City Airport in Oklahoma City, Oklahoma; and the 149-room Courtyard Toledo Airport Holland in Holland, Ohio, according to a filing on the Tel Aviv Stock Exchange where Skyline is required to issue notices affecting its bondholders in that country.
The effort to sell the properties comes amid reduced hotel acquisitions in the United States. Last year, only $29.6 billion of hotels changed hands, less than half of the total transaction value of the prior year, according to CoStar data.
In the first half of this year, only $10 billion in sales closed, according to CoStar. That is the second-lowest first-half total in a dozen years. The only other lower total was in the first half of 2020 when COVID-19 evolved into a global pandemic.
Transaction activity has been muted by high borrowing costs and disagreements over pricing between buyers and sellers.
The four new properties under contract are expected to sell for a combined price of $31.5 million, according to Skyline’s filing. That total is about $4.2 million less than the total value of the properties on the company's books as of March 31.
If agreements for the sale of the 12 Courtyard hotels under contract are completed, the expected cumulative price would be $123.3 million, according to the filing. That would be enough to pay off existing loans of $105.5 million on the properties.