Ashford Hospitality Trust recently sold the 144-room Residence Inn Salt Lake City Cottonwood for $19.2 million, with a projected capitalization rate of 4.6% on net operating income in 2023 and a Hotel EBITDA multiple of 18.2x.
CIM Group provided an $18.3 million loan to PEG Companies for the acquisition of this hotel.
PEG Companies, known for owning and operating seven Residence Inns, plans to take over management using their own platform and implement renovations focused on guest rooms and common areas.
Built in 1999, this particular Residence Inn is the sole extended-stay option in the Cottonwood area near popular canyons frequented by visitors.
This loan marks CIM Group’s expansion into hospitality lending beyond full-service properties as they continue to invest in select and extended stay sectors since last year’s growth period.
