Less than a month after the CEO of TMI Hospitality denied reports of an impending sale of its hotel stock to Starwood Capital Group, a deal has been struck, the two companies jointly announced.
Reports in May said a deal could be worth up to $1 billion, but neither party has divulged financial details for the transfer of TMI’s 188-hotel portfolio.
Through an affiliate of Starwood Global Opportunity Fund, Starwood Capital will buy all the hotel stock of Fargo-based TMI, its management company and development platform.
TMI’s branded hotels include Marriott, Hilton, Choice and Carlson, mainly in the select-service and extended-stay sector.
The properties are located nationwide in 26 states, employing around 4,000 hotel workers.
"The acquisition of TMI Hospitality, a proven and trusted property manager, offers Starwood Capital the opportunity to build on our investments in select-service and extended-stay lodging," said Suril Shah, SVP of acquisitions of Starwood Capital.
"With Starwood Capital, TMI will be able to continue pursuing its growth strategy," said Lauris Molbert, CEO of TMI, who only weeks ago had said reports of an impending deal with Starwood Capital or any other suitor was "completely false."
