Real estate investment manager Sarofim Realty Advisors bought an 85% stake in Host Marriott Corporation’s interest in CBM Joint Venture, which owns 120 Courtyard by Marriott hotels. Sarofim made the purchase on behalf of an unnamed pension fund.

On top of the $92 million acquisition price, the client also invested an additional $240 million to recapitalize the joint venture and reduce its capital costs.

While assuming $262 million of existing debt on the Courtyard I portfolio, Lehman Brothers provided $550 million of long term financing on the Courtyard II portfolio that is owned by the CBM Joint Venture.

The hotels are located in 29 states, and CBM plans to make extensive upgrades and renovations on the properties. Many of the joint venture’s hotels have already completed renovations, which include updated designs for the lobby and guest rooms.

“This transaction will enhance our clients’ portfolio by providing diversification and value added returns,” says C. A. Galpern, President & CEO of Sarofim Realty Advisors. “We were able to negotiate this deal when interest in hotels was just beginning to return to favor with institutional investors.”