BW RRI IV, LLC, a partnership between a Singapore investor and Westmont Hospitality has won the bidding for a Red Roof Inn portfolio which contains 89 hotels with 10,715 rooms. Their winning bid of about $600 million ($55,996 per room) beat out runner-up Blackstone, which wanted to convert the properties to its Motel 6 brand.
Five Mile and Westmont put the portfolio up for sale this past December via Eastdil Secured. Westmont wanted to stay in the investment, so it teamed up with the unidentified Singapore investor to make an offer on the portfolio.
The sale enables majority partner Five Mile Capital to cash out and Westmont to retain a minority stake and continue to operate the portfolio.
There were two Tucson Red Roof Inns that sold in the transaction, the 118-room hotel at 3704 East Irvington Road (near Tucson International Airport) in Tucson for $2.89 million ($24,450 per room) and the 133-room hotel at 4940 West Ina Road in North Tucson for $2.95 million ($22,208 per room).