Liberty Group closes first deal with new fund

The Sirata Beach Resort sale isn't the only lodging news happening in the Tampa/St. Petersburg area, of course.

Less than two months after putting the finishing touches on its Liberty Hospitality Fund II L.P., Tampa-based Liberty Group has closed on its first hotel acquisition with the new private-equity investment vehicle.

Liberty intends to leverage “economies of scale” and a “favorable capital structure” to “unlock value” in the 120-room Hampton Inn in Norfolk-Virginia Beach, Va.

“The upper select service segment of the hospitality industry continues to outperform other real estate investment sectors,” says Punit Shah, Liberty Group's CEO.

Shah adds that the Hampton Inn will undergo a “significant capital improvement” under its ownership.

Launched in January and finalized in May, the Hospitality Fund II raised $56.3 million in equity from investors, representing more than $165 million in leveraged capital to acquire both select service and extended-stay hotels throughout the U.S. through 2020.

The Hampton Inn becomes Liberty Group's 55th acquisition overall, deals valued in excess of $425 million and involving properties with more than 4,000 hotel rooms.