Caliber completes $13m Holiday Inn Ocotillo sale, targets 2026 expansion
Real estate investment and asset management business Caliber has announced the sale of the Holiday Inn Ocotillo, Arizona, US, for $13m.
The property belonged to Caliber Hospitality Trust (CHT), a Caliber-managed vehicle that invests in hospitality sector assets with a focus on hotel acquisitions and development.
Proceeds from the sale will be combined with new equity raised through Caliber’s capital markets platform and institutional partners as part of CHT’s plan to expand its hotel portfolio starting in 2026.
CHT was established to acquire hotels carrying established brands, generate cash flow, and pursue transactions offering tax efficiencies, value-added opportunities, selective developments, and strategic partnerships.
Throughout 2024 and 2025, Caliber concentrated on building CHT’s structure and assessing initial deals to scale the platform.
However, as hotel profitability fell across the US due to increased interest rates and narrowing margins, CHT decided against proceeding with certain investments that no longer aligned with its return criteria.
Many hotels are currently generating positive cash flow at the property level. However, they are also confronting several challenges, including upcoming loan maturities, mandatory property improvement plans set by brands, and inefficient operating structures.
CHT’s approach aims to address these by offering flexible transaction structures such as tax-advantaged exchanges or debt restructuring, collaborating with brands on mandatory improvements, providing renovation support, and managing assets at an institutional level.
The acquisition strategy remains focused on maximising distributable cash relative to invested equity through disciplined underwriting and portfolio management.
Caliber CEO Chris Loeffler said: “This transaction reflects the discipline of our acquisition and repositioning strategy. We acquired the property prior to Covid, navigated through one of the most disruptive periods in the history of the hospitality industry, and exited the investment at a time when we are seeing better uses of capital.
“We now turn our attention back to growth as we enter a market full of new opportunities to create value for CHT.”
As the sponsor of CHT and owner of its external adviser, the real estate investment company earns revenue from fees tied to asset management, as well as performance incentives.
As CHT’s portfolio grows in size and performance, Caliber expects recurring revenue at the corporate level to rise accordingly.
The plans involve exploring liquidity options for investors over time, potentially utilising a non-traded real estate investment trust (REIT) structure that would provide periodic liquidity events.
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