COLUMBUS, Ohio—Debt and equity investment company RockBridge Capital LLC has been a busy hotel investor of late.
The company on 13 January acquired for an undisclosed price two properties near Pittsburgh. One of the hotels is a 103-room Hampton Inn & Suites property in Washington, Pennsylvania, and the other is a 113-room Homewood Suites hotel in Canonsburg, Pennsylvania.
On 19 January, RockBridge announced it made a preferred equity investment to recapitalize and reposition the 329-room, full-service Wynfrey Hotel in Birmingham, Alabama.
The Wynfrey is scheduled to undergo a multimillion dollar renovation after which the property will be reflagged as the Hyatt Regency Birmingham - The Wynfrey Hotel. The renovation is scheduled to begin this fall and is expected to be completed by March 2013.
Bruce Lowrey, managing director at RockBridge, said it’s an easy decision to deploy capital today because so many properties are valued at less than replacement cost. “We’ve been active the last five months or so,” he said.
It doesn’t look like that activity will be tempered much going forward. When asked about the company’s future deal activity, Lowrey responded: “Safe to say, more of the same.”
RockBridge does not have a hotel assets quota to make in 2012. The company counts more than 40 hotels in its portfolio, Lowrey said.
“We’re going to (look) for a good deal,” Lowrey said, “but if we don’t find it, we’re not going to do anything.”
The company has executed all-cash deals and has mixed in leverage from time to time, too.
“A low leverage loan on a performing hotel, we don’t think we’re taking on a lot of risk,” Lowrey said.
Contact:
RockBridge Capital LLC
Phone: (614) 246-2400