US: Denver-based real estate company Highside has secured $500 million financing from affiliates of Apollo to support the expansion of Everhome Suites.
The finance will be used to support approximately 35 existing and new Everhome Suites projects in the US, which are expected to be completed in the next five years.
Highside aims to grow its extended stay holdings to a nationally diversified portfolio exceeding $2 billion over the next decade.
CEO of Highside, Justin Roberts, said: “We believe that this transaction will allow Highside to accelerate the national rollout of our Everhome Suites development program during a time of extremely constrained growth of new extended stay hotel development.
“We are long term believers in Everhome Suites and the broader extended stay model and will continue to grow our portfolio aggressively. Our plan is to build a diversified institutional-sized portfolio of extended stay assets over the next five to 10 years, and this puts Highside on track to accomplish that goal.”
Scott Weiner, Apollo partner and global head of real estate credit, added: “We are pleased to support Highside and Choice Hotels with this customised financing solution to accelerate the growth of the Everhome Suites portfolio. Justin and team have a wealth of expertise in the extended stay market, which continues to experience strong demand fundamentals, and we look forward to watching Highside and Choice bring their vision for Everhome Suites to life.”
Everhome Suites is a midscale extended stay hotel brand under Choice Hotels.
Matt McElhare, vice president – extended stay brands, Choice Hotels, said: “This agreement marks a pivotal moment for Everhome Suites. With Highside’s demonstrated development expertise and our best-in-class extended stay playbook, we’re positioned to accelerate the nationwide expansion of Everhome Suites at a time when demand for extended stay accommodations continues to rise.”
Stifel acted as exclusive financial advisor and sole placement agent to Highside in obtaining the financing package.
Highlights:
• Highside has secured $500 million in financing from Apollo affiliates.
• The funds will support around 35 Everhome Suites projects over the next five years.
• Highside plans to grow its extended stay portfolio to over $2 billion in value.
• Everhome Suites is a midscale extended stay brand under Choice Hotels.
• Stifel acted as the exclusive financial advisor and placement agent for the deal.
