New updates have been reported about Caliber.
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Caliber (Nasdaq: CWD) has sold the Holiday Inn Ocotillo in the Phoenix–Chandler submarket for $13.0 million, crystallizing value from an asset held within Caliber Hospitality Trust, Inc. (CHT), its private Up-C hospitality vehicle. CEO Chris Loeffler said the sale marks a disciplined exit from a pre-COVID acquisition after navigating sector disruption, with Caliber now redeploying capital into higher-return opportunities.
Proceeds from the transaction will be recycled, combined with new equity raised via Caliber’s in-house capital markets platform and institutional partners, to support a new phase of CHT portfolio growth targeted for 2026. CHT, structured as an institutional-grade platform, is focused on aggregating branded, cash-flowing hotels through tax-efficient contributions, value-add acquisitions, development, and strategic partnerships.
During 2024–2025, Caliber concentrated on structuring CHT and conducting due diligence on initial hotel contributions and acquisitions, but tightening margins and higher interest rates led the Trust to walk away from deals that no longer met its return thresholds. With many hotels now facing loan maturities, brand-mandated property improvements, and operational inefficiencies despite positive property-level cash flows, Caliber sees 2026–2027 as a more attractive acquisition window.
CHT is positioned to offer flexible solutions to hotel owners, including potential tax-advantaged exchange structures, debt restructuring or replacement, and collaboration with brands to finance required renovations, while applying institutional-grade renovation and asset management expertise. The acquisition strategy emphasizes maximizing distributable cash flow relative to equity deployed, disciplined underwriting, value-add renovations, and balance sheet stability to support a scalable portfolio.
As sponsor and external advisor to CHT, Caliber expects to benefit from asset management fees, performance incentives, and potential balance sheet participation, which should enhance recurring revenue and operating leverage at the corporate level as the Trust grows. Over time, CHT may pursue liquidity pathways such as a non-traded REIT structure with periodic liquidity, with an eventual goal of reaching sufficient scale and performance to seek a public listing, aligning long-term value creation for both CHT investors and Caliber shareholders.
Caliber, an alternative investment manager with more than $2.9 billion in managed assets across hospitality, multifamily, and industrial real estate, views disciplined hotel acquisitions funded through its capital markets capabilities as a key lever for future growth. Management believes that the current environment favors buyers with flexible capital, and plans to methodically build CHT around assets that deliver strong cash flow per dollar of equity invested.