Business
Caliber Announces Second Contribution to Caliber Hospitality Trust
L.T.D. Hospitality Group agrees to contribute nine Virginia-based hotels including IHG and Marriott brands to Caliber Hospitality Trust; the second of
About this update from Calibercos Inc.
[{"type":"text","content":"\n\nL.T.D. Hospitality Group agrees to contribute nine Virginia-based hotels including IHG and Marriott brands to Caliber Hospitality Trust; the second of several planned contributions\n\n\n\n\nUpon closing, the contribution will expand Caliber Hospitality’s portfolio to 15 hotels from six and more than double its portfolio valuation to $405 million\n\n\n\n\nContribution will also increase Caliber’s FV AUM by 25% and its asset management revenue run rate by approximately $2 million, or 20%\n\n\n\n SCOTTSDALE, Ariz.--(BUSINESS WIRE)--\nCaliberCos Inc. (NASDAQ: CWD) (“Caliber”), a leading vertically integrated alternative asset manager, today announced that it has reached an agreement with L.T.D. Hospitality Group LLC (“L.T.D.”) in which L.T.D. has agreed to contribute nine hotel properties to its subsidiary, Caliber Hospitality Trust (“CHT”), an externally advised private hospitality corporation. The transaction is subject to customary closing conditions and is expected to close by the end of the third quarter of 2023.\n\n\nBased in Virginia Beach, Va., L.T.D. is a hospitality management and development company founded in 1983, led by managing principals Neel Desai and Malay Thakkar. All nine properties to be contributed by L.T.D. are in Virginia and include a mix of upscale to upper upscale hotels across multiple IHG and Marriott brands.\n\n\nFormed in 2022, CHT accepted its initial contribution of six hotels in Arizona in the first quarter of 2023 from Funds managed by Caliber. The value of this initial portfolio was approximately $186 million as of June 30, 2023.\n\n\nThe execution of a contribution agreement with L.T.D. marks CHT’s second contribution of assets, which, upon transaction closing, will grow CHT’s assets under management (“AUM”) to $405 million. Under the terms of the contribution agreement, L.T.D. will receive cash and/or operating partnership units (“OP Units”) in exchange for the contribution of its nine hotels.\n\n\nUpon closing, this addition will more than double the value of CHT’s current portfolio to $405 million and increase Caliber’s FV AUM1 by approximately 25%. In addition, Caliber’s asset management revenue run rate will further increase by approximately $2 million, or 20%2, considering the value of the portfolio contributed and the terms of the contribution and management agreements. Caliber is in a...