FRANKLIN, TENNESSEE Chartwell Hospitality has raised US$200 million in equity for the Chartwell Hospitality Fund I, which is targeting acquisitions of hotels—both assets and debt—in strong U.S. markets with high barriers to new development. Chartwell is eyeing both large urban markets as well as smaller tertiary markets for investment.
Chartwell’s general partners are co-investing US$50 million, primarily with Chartwell’s long-time lodging investment partners. The fund equity will be moderately leveraged at 50% to 60% into US$400 million to US$500 million of investment capital.
The fund’s Chairman and CEO is Phillip H. McNeill Sr., the founder and CEO of the Equity Inns REIT, which he grew to 132 hotels and sold in October 2007 to a Goldman Sachs subsidiary for approximately US$2.2 billion. He is joined by Robert G. Schaedle, president of the fund, who has cofounded two hotel and multifamily acquisition and development companies, creating value in excess of US$1 billion.
McNeill and Schaedle founded Chartwell Hospitality in 2003, building it into a fully-integrated hotel owner-operator with in-house management, acquisition and development divisions. Chartwell owns and operates 28 hotels, predominantly under Hilton Worldwide and Marriott International select-service flags.
Chartwell acquisition targets encompass a wide range of value-creation strategies, including financially distressed properties, value-added renovations, rebranding and repositioning through superior management. Chartwell expects to deploy the capital over the next 12 to 18 months.