Caliber Announces Second Contribution to Caliber Hospitality Trust
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L.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
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Upon closing, the contribution will expand Caliber Hospitality’s portfolio to 15 hotels from six and more than double its portfolio valuation to
$405 million
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Contribution will also increase Caliber’s FV AUM by
25% and its asset management revenue run rate by approximately , or$2 million 20%
Based in
Formed in 2022, CHT accepted its initial contribution of six hotels in
The 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
Upon closing, this addition will more than double the value of CHT’s current portfolio to
Commenting on CHT’s plans for growth, Caliber CEO Chris Loeffler said, “We believe there are a substantial number of hotel owners across the
“Our model allows our contributor partners to do what they do best – own, invest in, and operate successful hotels – while Caliber provides capital, expertise and other resources including technology, data and analytics, training, and business support services so they can continue to grow their businesses. This partnership enables CHT to expand its real estate portfolio, while also attracting talented and experienced hotel executives with a proven track record of success, deep local market and hospitality sector knowledge, and valuable relationships.
“L.T.D. is an ideal first contributor that validates our strategy. We are very excited to welcome Neel Desai and the L.T.D. team to CHT. Neel has decades of experience, and we look forward to him joining Caliber Hospitality’s Board of Directors to help guide our growth.”
“We are thrilled to join forces with Caliber and CHT and look forward to working closely with the entire Caliber team,” said Neel Desai, managing principal of L.T.D. Hospitality Group. “When L.T.D. bought its first hotel in 1983, we dreamed our business would grow within the
L.T.D.’s contribution will expand Caliber’s multi-state footprint into
Founding Contributors have the opportunity to receive operating capital and an immediate ownership stake in the company through a tax-free exchange for OP Units. Caliber has set a target date of September 30, 2023, for potential partners to sign term sheets to contribute their hotels to CHT. Interested parties should reach out to Invest@CaliberCo.com for additional information.
About CaliberCos Inc.
Caliber (NASDAQ: CWD) is an alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in real estate. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments, which are managed by our in-house asset services group. The Company leverages access to both the public and private markets to maximize value for its customers and funds. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.
About Caliber Hospitality Trust
Caliber Hospitality Trust (“CHT”), an externally advised private hospitality corporation, is a subsidiary of CaliberCos Inc. (NASDAQ: CWD). Led by an experienced team of agile entrepreneurs and specialists, CHT offers a unique opportunity in an UPREIT transaction for hotel owners and managers to access scale on a tax-deferred basis. CHT is targeting middle-market full service, select service, extended stay, and lifestyle hotels in attractive geographic locations. CHT’s asset management technology enables management of mixed asset classes, top-tier brands, and third-party managers, who all interact via an integrated platform.
About L.T.D. Hospitality Group
Founded in 1983, L.T.D. Hospitality Group is headquartered in
Forward Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate including, but not limited to, the closing of the transaction with L.T.D. Hospitality Group LLC. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the Company’s public offering filed with the SEC and other reports filed with the SEC thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
1 Fair value assets under management is defined as the aggregate fair value of the real estate assets the Company manages from which it derives management fees, performance revenues and other fees and expense reimbursements, as of June 30, 2023.
2 Asset management revenue run rate is an estimate that annualizes asset management revenue, which are on a basis that deconsolidates the consolidated funds, for the month ended June 30, 2023.
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Caliber:
Samantha Vrcic
+1 480-295-7600
Samantha.vrcic@caliberco.com
Media Relations:
Kelly McAndrew
Financial Profiles
+1 203-613-1552
KMcAndrew@finprofiles.com
Investor Relations:
Julie Kegley
Financial Profiles
+1 310 622 8246
jkegley@finprofiles.com
Source: CaliberCos Inc.