Caliber Hospitality Trust Expands Roll-Up With Seven New Hotels from Satori Collective

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USA, Scottsdale, Arizona. December 06, 2024

Caliber a real estate investor, developer, and manager, announced that it has reached a definitive agreement with Satori Collective ("Satori") in which Satori will contribute seven hotel properties to Caliber subsidiary Caliber Hospitality Trust ("CHT"), an externally advised private hospitality corporation. The transaction is expected to close in early 2025, subject to customary closing conditions.

Atlanta-based Satori Collective, formerly known as Banyan Investment Group and founded in 2013, is an investment management firm focused primarily on hotel property investment. The seven Satori properties in this agreement include a mix of middle-market full service, select service and extended stay hotels in the Midwestern and Southern U.S., representing Marriott, Hilton and IHG hospitality brands. The combined portfolio value is approximately $120 million.

With the Satori portfolio, CHT currently has 15 properties in the closing process. Upon closing those contributions, CHT will have 22 hotels in ownership and have expanded its assets under management ("AUM") from $234 million today to $530 million. In addition, with all 22 properties in CHT, Caliber's asset management revenue run rate will increase by approximately $2.4 million, or 42%, given the value of the portfolios contributed and the terms of the contribution and management agreements.

"This contribution significantly enhances our hospitality portfolio, providing us with a diverse set of properties in strategic locations," said Caliber CEO Chris Loeffler. "By integrating Satori's assets into CHT, we are not only expanding our national footprint but also reinforcing our commitment to deliver superior value to our investors. This partnership exemplifies our strategy of adding value to income-producing assets to accelerate growth and create sustainable, long-term returns."

Andy Chopra, Co-Founder and Managing Partner of Satori Collective, said, "We are honored to partner with Caliber. The quality of our portfolio and our capabilities as an investment manager align perfectly with Caliber's vision. This partnership will allow us to continue growing and optimizing our operations nationwide."

These hotels will continue to be operated by Aperture Hotels, an emerging leader in the hotel management industry. The company operates properties with the world's largest hotel brands following a value-based approach to management that delivers an outperforming gross operating profit margin on a portfolio-wide basis.

Satori's contribution will further expand Caliber's multi-state footprint into markets with unique growth drivers, including their proximity to university campuses, sports complexes, manufacturing facilities, and local airports. The locations are Madison, Wis., Peoria, Ill., Houston, Texas, Columbus, Ga., and Tuscaloosa, Ala.

Loeffler continued, "Many hotel owners across the U.S. are seeking alternatives to traditional asset sales to gain liquidity, manage debt, fund property improvements, or secure well-priced capital for growth. These owners, seasoned professionals with deep commitments to their businesses, recognize the advantages of scaling up and accessing permanent capital. The Caliber Hospitality Trust offers these benefits, and we will continue to seek aligned hotel owners for future contributions."

Under the terms of the contribution agreement, Satori will receive cash and/or operating partnership units ("OP Units") in exchange for the contribution of its seven hotels. Caliber is in active discussions with other potential third-party contributors to CHT and expects to make additional announcements in the months ahead. Founding contributors to CHT have the opportunity to receive operating capital and an immediate ownership stake in the company through a tax-free exchange for OP Units. Interested parties should reach out to [email protected] for additional information about contributing hotels to the CHT strategy or investing in the opportunity. Investment in Caliber's private funds, including CHT, is available to accredited investors only.