By Andrew McIntyre

Law360 (July 6, 2020, 5:00 PM EDT) -- Cliffe Dekker Hofmeyr and Latham were among the more than half-dozen law firms that landed work on the largest hotel transactions during a sluggish second quarter that saw deal flow fall markedly because of the COVID-19 pandemic.

Cliffe Dekker Hofmeyr worked on an $869 million deal for a majority stake in Sun International (South Africa) Ltd., the largest transaction of the quarter, while Latham & Watkins LLP helped China Jinmao Holdings Group Ltd. with its $411 million purchase of a minority stake in two entities, Jinmao Hotel and Jinmao (China) Hotel Investments and Management Ltd., which was the quarter's second-largest deal.

The hotel industry has been particularly hard-hit by the COVID-19 pandemic as occupancy levels have plunged. By contrast, the first quarter of 2020 saw one hotel deal worth $6 billion and another worth $3 billion.

The data, from Dealogic, accounts for transactions announced in the second quarter that have closed or are pending. Figures include debt.


The largest deal of the quarter saw Chile-based investment firm Nueva Inversiones Pacifico Sur Ltda. purchase a 50.1% stake in hotel and casino operator Sun International for $869 million, with Cliffe Dekker Hofmeyr advising Sun International on the sale.

Counsel information for the buyer was not immediately available.

That deal was announced on June 22 and is pending.

The second-largest deal of the period was China Jinmao Holdings' $411 million acquisition of a 33.19% stake in Jinmao Hotel and Jinmao (China) Hotel Investments and Management Ltd. Both entities invest in hospitality properties in China.

Latham & Watkins LLP's Cathy Yeung represented Jinmao Holdings Group on the deal. Sell-side counsel information was not immediately available.

That deal was announced June 12 and remains pending.

Coming in at No. 3 for the quarter was Shanghai Zhengjiu Industrial Co. Ltd.'s $204 million purchase of the Guoman Hotel in Shanghai from Singapore's GuocoLand Ltd.

The companies signed their purchase and sale agreement for the 442-room hotel on April 10, and the deal is  pending. Counsel information was not immediately available.

WongPartnership has represented GuocoLand on prior real estate matters, although it wasn't immediately clear if the law firm helped GuocoLand on the latest transaction.

The fourth-largest deal of the year was California hospitality startup Sonder USA Inc.'s $170 million Series E raise, which included investments from Fidelity Investments Inc., West Capital Advisors LLC and iNovia Capital.

Mark Baudler and Jonathan Chan at Wilson Sonsini Goodrich & Rosati PC helped Sonder with the matter, which saw the company raise its Series E round at a $1.3 billion valuation.

On the investor side, Ellen Ehrenpreis at Orrick Herrington & Sutcliffe LLP represented iNovia while Peter Healy at McDermott Will & Emery LLP counseled West Capital Advisors. Counsel information for Fidelity and other investors was not immediately available.

Sonder USA announced the latest raise on June 24, and the matter has closed.

Rounding out the Top 5 deals of the quarter was Twin River Worldwide Holdings Inc.'s $155 million purchase of a pair of casinos from Eldorado Resorts Inc.

Jones Day assisted Twin River with its purchases of the properties — Eldorado Shreveport Resort and Casino in Shreveport, Louisiana, and MontBleu Resort Casino & Spa in Lake Tahoe, Nevada. Eldorado had counsel on the sales from Jason Anderson, Deborah Conrad, Fiona Schaeffer and Roy Jackson of Milbank LLP.

That deal was also the last of the matters north of $100 million for the quarter. The firms announced the transaction on April 24, and the deal remains pending.

Coming in at No. 6 was Deka Immobilien GmbH's $71 million purchase of the 502-room Clayton Hotel in Dublin from Dalata Hotel Group PLC.

Deka Immobilien, which is based in Germany, had counsel on the acquisition from OBH Partners.

The firms announced that deal on April 21 and, despite the COVID-19 pandemic, wrapped it up eight days later, on April 29.

The seventh-largest deal of the quarter was Germany-based real estate firm E&P Real Estate GmbH & Co. KG's $64 million purchase of the Pullman Eindhoven Cocagne Hotel in Eindhoven, Netherlands, from Luxembourg-based Aina Hospitality SARL.

The firms did a sign and close for that deal, signing and closing on April 1. The four-star hotel has 320 rooms.

Coming in at No. 8 for the quarter was Playa Hotels & Resorts NV's $60 million sale of Jewel Dunn's River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark in Jamaica to an undisclosed buyer.

Playa Hotels announced that deal on May 1 and closed it on May 22 amid the pandemic. Playa said in May it would continue to have a presence in Jamaica following the sales.

The penultimate deal on the Top 10 list was Zhongyuan Yuzi Investment Holding Group Co. Ltd.'s $55 million purchase of a 70% stake in Zonglu Shengcheng Investment Co. Ltd. from Chinese developer Palm Eco-Town Development Co. Ltd.

That deal was announced on June 8 and is pending.

Counsel information for deals No. 7, 8 and 9 was not immediately available.

Rounding out the Top 10 transactions of the second quarter was a roughly $50 million investment in Travelodge Hotels Ltd. by existing shareholders of the company.

The U.K.-based hospitality company said on June 3 that the company would receive £240 million ($299 million) in shareholder support, and one piece of that was a £40 million ($50 million) investment from existing shareholders.

Kirkland & Ellis LLP's Elaine Nolan represented Travelodge in connection with the deal.

--Editing by Jill Coffey.

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