Colony exits hospitality sector with $2.7 sale to Highgate, Cerberus


Colony Capital has closed on its $2.7 billion sale of its
six hospitality portfolios to Highgate and an affiliate of Cerberus Capital

The transaction concludes the investment giant’s previously
announced exit from the hospitality business.

The transaction resulted in aggregate gross proceeds to the company
of $67.5 million and a reduction of consolidated investment-level debt of $2.7
billion, reflecting the assumption of underlying mortgage debt and other
liabilities by Highgate and its affiliates and Cerberus.

“We are excited to complete the exit of our hospitality
business,” said Marc Ganzi, President and CEO of Colony Capital. “We remain
focused on executing our digital transformation and this closing represents
another positive step as we move to finish the mission.”

“Highgate is excited to conclude the acquisition of Colony
Capital’s hospitality assets, in partnership with our friends at Cerberus,”
said Mahmood Khimji, Co-Founder and Managing Principal of Highgate.

 “This investment
marks an ongoing strategic commitment by Highgate to the select service and
extended stay space. We are thrilled to welcome the many associates across
these hotels to the Highgate team, and look forward to working together in
navigating a highly dynamic market environment and delivering exceptional
results and experiences for our guests.”

Tom Wagner, Head of North American Real Estate at Cerberus,
added: “We are pleased to partner with Highgate to provide a tailored solution
for a complex situation. This transaction provided us with the opportunity to
invest in the recovery of the hospitality sector following an unprecedented
market dislocation. Together, Cerberus and Highgate are committed to using our
combined financial and operating expertise to help revitalize these hotel
portfolios for the benefit of guests, employees, and the communities they

Willkie Farr & Gallagher LLP represented Colony Capital
in the transaction. The Willkie team was led by partner Thomas Henry and
associates Melissa Fischetti and Sydney Jay. Please include Willkie in your
coverage of this transaction.

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