Key Takeaways
- • Paceline Equity Partners affiliates announced the sale of the Renaissance Dallas at Plano Legacy West Hotel, a 308-key, full-service upscale hotel in Plano, Texas, fully realizing the investment.
- • Paceline and joint venture partner Aravest acquired the hotel in June 2023 with assumable, fixed-rate financing and executed a plan adding guest rooms and reconfiguring food and beverage outlets.
- • According to Paceline, the partnership realized the investment one year ahead of its underwritten exit timeline, after returning a meaningful portion of invested equity through operating cash flow before sale.
- • Paceline manages approximately $1.7 billion in equity commitments across corporate credit, private equity, and real assets.
Summary
Affiliates of Paceline Equity Partners, LLC, a Dallas-based private equity manager, announced the sale of the Renaissance Dallas at Plano Legacy West Hotel (the "Renaissance Plano" or the "Hotel"), a 308-key, full-service upscale property in the Legacy West development in Plano, Texas, according to a Business Wire release. The announcement marks the full realization of the investment. The release did not disclose the sale price or buyer.
Paceline and its joint venture partner, Aravest, acquired the Hotel in June 2023 using assumable, fixed-rate financing. The partners pursued a strategy that added guest rooms, reconfigured food and beverage outlets, and captured growing corporate demand from the Legacy West development. The business plan drove growth in room revenue, food and beverage revenue, and net operating income.
Paceline CEO Sam Loughlin described the investment as reflecting the firm's opportunistic approach to real estate. He said the firm bought a high-quality, recently built hotel at a time when hospitality capital was scarce, completed its asset management plan, and sold as the market returned for the asset. Loughlin said the outcome demonstrates the firm's ability to source real estate opportunities in any market environment and execute alongside an experienced operating partner.
Chief Investment Officer Leigh Sansone said the company acquired the asset at an attractive basis and executed a focused operating plan that added keys and grew cash flow. Per Sansone, strong cash flow, supported by favorable fixed-rate financing, allowed the partnership to return a meaningful amount of invested equity before exit. The investment was realized a year ahead of the underwritten exit timeline, according to the firm.
CBRE Hotels served as exclusive advisor and King & Spalding as legal counsel to Paceline on the transaction. Paceline is a Dallas-based manager focused on value-oriented, opportunistic, and special situations investments across corporate credit, private equity, and real assets, with senior leadership that has worked together for nearly 20 years.
Paceline and its joint venture partner, Aravest, acquired the Hotel in June 2023 using assumable, fixed-rate financing. The partners pursued a strategy that added guest rooms, reconfigured food and beverage outlets, and captured growing corporate demand from the Legacy West development. The business plan drove growth in room revenue, food and beverage revenue, and net operating income.
Paceline CEO Sam Loughlin described the investment as reflecting the firm's opportunistic approach to real estate. He said the firm bought a high-quality, recently built hotel at a time when hospitality capital was scarce, completed its asset management plan, and sold as the market returned for the asset. Loughlin said the outcome demonstrates the firm's ability to source real estate opportunities in any market environment and execute alongside an experienced operating partner.
Chief Investment Officer Leigh Sansone said the company acquired the asset at an attractive basis and executed a focused operating plan that added keys and grew cash flow. Per Sansone, strong cash flow, supported by favorable fixed-rate financing, allowed the partnership to return a meaningful amount of invested equity before exit. The investment was realized a year ahead of the underwritten exit timeline, according to the firm.
CBRE Hotels served as exclusive advisor and King & Spalding as legal counsel to Paceline on the transaction. Paceline is a Dallas-based manager focused on value-oriented, opportunistic, and special situations investments across corporate credit, private equity, and real assets, with senior leadership that has worked together for nearly 20 years.
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