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Embassy Suites in Dublin put up for sale
Columbus Business Journal, 09/11/2012
By Brian R. Ball

The owner of the 284-room Embassy Suites in Dublin has put the hotel and 12 others on the market as part of a deal to avoid foreclosure.

New York-based Eagle Hospitality Properties Trust will sell its eight Embassy Suites, two Hiltons, two Marriotts and a Hyatt Place rather than have Blackstone Group (NYSE:BX) foreclose on a $600 million-plus mortgage the private equity firm had purchased in May at a discount.

Marc Beilinson, who serves as Eagle Hospitality’s chief restructuring officer, said the properties will be offered as a package or individually without a stated offering price.

“We’re letting the market determine the value of the properties,” Beilinson said.

Private equity firm Area Property Partners bought Eagle Hospitality in 2007.

The Wall Street Journal reported Blackstone acquired the loan through a Federal Reserve Bank affiliate that took over assets of the now-defunct Bear Stearns investment bank. Beilenson confirmed that loan came due Sunday. Falling property values kept the company from refinancing.

In addition to the Dublin Embassy Suites, the properties put on the market include the 321-room Cincinnati Marriott at RiverCenter, the 306-room Embassy Suites Cincinnati, the 226-room Hilton Cincinnati Airport, and the 271-room Embassy Suites Cleveland/Rockside.

The hotels as a group have an average daily rate of $126 and an average occupancy of 75.4 percent.

Lazard Frères & Co. LLC serves as the exclusive financial adviser managing the sale.