Eagle Hospitality REIT drops the Crowne for $24.1 m
Eagle Hospitality REIT called the Texas property a "drain on a limited pool of funds".
Eagle Hospitality Real Estate Investment Trust, through its trustee DBS Trustee Limited, has announced the sale of one of its US hotels.
For a tune of approximately $24.1 m (US$18 m), the Texas-based Crowne Plaza Dallas Near Galleria-Addison has been the subject of a purchase and sale agreement with Lockwood Development Partners.
The hotel has been described by Eagle Hospitality as a "drain on a limited pool of funds," having been closed since April 2020 due to the pandemic.
"Despite this, it incurs ongoing expenses, such as the monthly maintenance costs and expenses of approximately US$100,000 per month which continue to accrue. There has been further damage to the property during the recent winter storms and this will require an additional expense of approximately US$350,000 for immediate repairs," the company said in a bourse disclosure.
It added that re-opening the property would present a substantial risk to stakeholders and creditors.
The current purchase price of the property is less than its November 2020 valuation of US$18.6 m.
"The current sale price reflects the current realities. It would not be possible in the current market nor would it be realistic to secure a sale of an asset based on historic prices, let alone, at pre-COVID 19 levels," Eagle Hospitality explained.
Texas experienced an unprecedented snow storm in February, which damaged several hotels and properties.