Sandpiper Forms Extended-Stay Hotel REIT: Sandpiper Lodging Trust
Newtown, PA
Sandpiper Forms Extended-Stay Hotel REIT: Sandpiper Lodging Trust
Newtown, PA
Lodging Magazine:
Sandpiper, LLC, developer and operator of extended-stay hotels, has completed the formation of Sandpiper Lodging Trust (SLT). SLT is a privately held Maryland real estate investment trust (REIT) focused on extended-stay hotel properties, with emphasis on the economy and mid-scale segments of the market.
In conjunction with the formation of SLT, the company acquired nine operating hotels from affiliates of Sandpiper, LLC that operate under the WoodSpring Suites brand. SLT was capitalized through the roll-over by a majority of the investors in the nine hotels of their ownership interests in exchange for equity in SLT, the completion of a new $75 million credit facility, and the private placement of approximately $12 million of new Class A common shares in SLT.
SLT expects to build a nationwide portfolio of extended-stay hotels through both acquisition and development to deliver both current income and long-term capital gains to its equity partners.
“I am very excited about the launch of our new flagship company, Sandpiper Lodging Trust,” said P. Carter Rise, chairman, president, and chief executive officer. “Our predecessor funds delivered outstanding returns to our investment partners, and it was time to recapitalize those funds into a vehicle that we could build on for the future. We are extremely happy that our current investors, as well as our new investors, see the opportunity to build a meaningful portfolio of extended-stay hotels.”
About Sandpiper
Based in Richmond, Va., Sandpiper, LLC is a nationally-focused real-estate investment organization recognized as one of the leading companies specializing in extended stay lodging properties. The company continues to develop its portfolio through ground-up development and selective acquisition of performing and non-performing properties. Sandpiper owns a total of 39 hotels under the Candlewood Suites (IHG), Courtyard (Marriott), ECHO Suites (Wyndham), Premier Suites (Extended Stay America), Residence Inn (Marriott), RiseWell Kitchen Suites (Sandpiper), Suburban Studios (Choice), and WoodSpring Suites (Choice) brands.
Sandpiper Hospitality ("SH"), an affiliated hotel management company, manages the entire Sandpiper portfolio and manages 30+ more hotels for unaffiliated third parties. SH has earned its position as the leading operator in the extended stay hotel segment of hospitality by combining the spirit of genuine, welcoming hospitality with superior financial returns, fueling the growth and prosperity of its various stakeholders – from associates to guests to owners and investors. For more information, visit www.sandpiperhospitality.com.
