The article (behind BusinessDay paywall):
What SA’s Stonewood plans in US expansion
Privately owned property investment and development company adds five hotels to its 16-hotel portfolio
Published in BusinessDay – 31 MARCH 2019 – by ALISTAIR ANDERSON
The article details the latest investment made by SARE in the US Extended Stay space.
The $85m deal was led by director Eldon Beinart; its US partner, Denver-based Eastside investment Partners; and South African investors.
In a $85m deal, the group led by director Eldon Beinart; its US partner, Denver-based EastSide Investment Partners; and South African investors bought 16 extended-stay style American hotels in Texas and Oklahoma in 2018 under the Extended Stay America brand. Part of the deal includes the rights to develop five other hotels into long-stay hotels.
This is the largest South African-led investment in the US hotel industry yet.
Stonewood has said it plans to convert five more distressed hotels into long-stay accommodation over the next year-and-a-half. Its first conversion is located in Houston. Future conversions will take place in Houston, Dallas and Oklahoma City.
“We are very excited. Soon we will own 21 hotels in the economy sector of the extended-stay segment, which we believe will continue to perform well despite the inevitable slowdown on the horizon in the US,” Beinart said.
“Our strategy has been to invest in properties in various countries, add value to them and then sell them on, often to real estate investment trusts,” Beinart said.
“The extended-stay hospitality sector has also performed favourably against the traditional rental market, platform services such as Airbnb AirBnB and hotels,” he said.