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Skyline International Development signs agreement to acquire 13 Courtyard Marriott hotels in US 

Skyline International Development is expanding its hotel business in the US. The company notified the TASE that it had signed a contingent agreement to acquire 13 business hotels with a total of 1,900 rooms for $135 million, excluding expenses for the deal.   

Under the agreement between the parties, Skyline will deposit $1.5 million from the purchase price in a trust account, and will have 50 days to conduct due diligence on the properties. Completion of the deal is slated for up to 45 days after the end of due diligence.

Skyline, controlled by Mishorim Development Ltd., a company controlled by Gil Blutrich and Alex Shnaider, said that the hotels were located “mostly in nine different states on the US east coast,” and that all of them were similar in size, number of rooms (an average of 150 rooms per hotel), structure, and design, and had all been built around the same time.

The seller has invested $80 million in upgrading the hotels since 2005, half of it in 2012-2014. Skyline plans to consider additional investments “in order to upgrade the acquired hotels” after the purchase.

Skyline also said that the hotels were being managed by the global Marriott hotel chain under the Courtyard Marriott brand name – a select service category of hotels with a limited range of services and facilities, and that it was therefore possible “to operate them more efficiently.”

Figures attached to the announcement by Mishorim show that the hotels’ revenue rose 4 per cent to $51 million in 2016, and that net operating income (NOI) from them grew 11 per cent $14.5 million. Occupancy averaged 65 per cent in 2016, and the average overnight price was $101.50.