RALEIGH, N.C. — Concord Hospitality Enterprises has sold a portfolio of 13 hotels in an all-cash transaction to companies owned by an unnamed global investment fund for approximately $240 million. The portfolio is comprised of 1,650 rooms representing 11 Marriott and two Hilton-branded hotels.
“This sale is a continuation of our ongoing plan to strategically sell stabilized assets while retaining management,” says Mark Laport, president and CEO of Concord Hospitality. “This gives our investors an attractive return on their development investment while providing long-term, sustainable growth opportunities for the companies that buy these assets.”
Concord Hospitality will continue to operate the hotels under a long-term management agreement. Mark Elliott of Hodges Ward Elliott was the lead broker in the transaction.
The average age of all but one hotel is under five years old, and all were developed, rebranded or substantially updated by Concord according to Laport.
“Each hotel is in excellent physical condition, and we are working closely with the brands to implement any necessary product improvement plans (PIPs) to ensure the hotels sustain strong RevPAR (revenue per available room) premiums well into the future,” says Laport.
Concord Hospitality currently has 10 hotels under construction at a cost of approximately $440 million with financing in place, according to Laport. All 10 hotels are slated to open in the next 18 months. Additionally, the Raleigh-based hotel owner and manager has eight premium hotels well along in the development pipeline at a cost of approximately $400 million.
— John Nelson