Brasswater pays more than $48M for two Palm Beach County Hampton Inns

Brasswater paid more than $48 million for two Hampton Inn hotels in Palm Beach County, Fla., buying them from Hospitality Investors Trust, Commercial Observer reported, citing property records.

The larger trade is the 164-room Hampton Inn & Suites Boynton Beach, which the Montreal-based firm bought for at least $29 million. The 102,476-square-foot property was built in 1997 on a three-acre site at 1475 Gateway Boulevard, about a mile west of Interstate 95.

Brasswater also paid more than $19 million for the 110-room Hampton Inn West Palm Beach Florida Turnpike. The 68,800-square-foot building was constructed in 2001 on 2.4 acres at 2025 Vista Parkway.

New York-based Axonic Capital supplied a $42.2 million debt package backing both hotels, equal to about 88% of the $48 million deed total. The true purchase price is likely higher, Commercial Observer reports, because public deeds typically capture only real estate and not furniture or hotel operations.

On the recorded numbers the deals price the hotels at roughly $177,000 a key in Boynton Beach and roughly $173,000 a key in West Palm Beach.

Hospitality Investors Trust bought the pair for a combined $43.6 million in 2015, so the sale clears that basis by roughly 10% before any capital spending, on the recorded figures.