MINNEAPOLIS — Loews Hotels & Resorts has entered into an agreement to purchase the 255-room Graves 601 Hotel Wyndham Grand in Minneapolis from the Graves Hospitality Corp. for an undisclosed price. The acquisition is expected to close in early July. Graves 601 Hotel is the fourth major hotel purchase announced by Loews Hotels in the last two years. Graves 601 is located directly across the street from the Target Center and is connected by the Minneapolis Skyway System, an interlinked collection of enclosed pedestrian footbridges. The hotel features two restaurants and bars, more than 9,000 square feet of meeting and event space, and a recently renovated spa and a fitness center.
Hospitality
SAN DIEGO — Lowe Enterprises, AECOM Capital and current property owner Atlas Hotels Inc. have formed a joint venture to own, operate and reposition the 954-room Town and Country Resort & Convention Center in the Mission Valley area of San Diego. Built in 1953, the two-building property is located at 500 Hotel Circle N., adjacent to the 27-hole Riverwalk Golf Club, as well as the Fashion Valley shopping center. The convention facilities include more than 200,000 square feet of flexible meeting space and more than 50,000 square feet of outdoor event space. The resort features the 14,000-square-foot Bella Tosca Day Spa, a fitness center, three restaurants and three swimming pools. Destination Hotels & Resorts, Lowe’s hospitality management subsidiary, has assumed management of the property. The new ownership group will immediately begin its property-wide upgrade program.
NEW YORK CITY — Hersha Hospitality Trust has opened Hilton Garden Inn Midtown East. Located on 52nd Street in Manhattan, the hotel brings 205 rooms to Manhattan’s office market, which totals approximately 20 million square feet. Based on the company’s forecasts, the development represents a first full-year economic capitalization rate of approximately 8.1 percent and a hotel EBITDA of 11.2x. Additionally, on a stabilized basis, the investment represents an economic capitalization rate of 11 percent and a hotel EBITDA multiple of 8.4x.
DALLAS — Locally based hotel investment, management and advisory company Prism Hotels & Resorts has assumed management of the 303-room Sheraton Dallas Fort Worth Airport Hotel. Concurrently, Prism — along with Los Angeles-based property owner Stratford Hospitality — has committed $7 million to renovate the property, including improvements to the hotel’s three-story atrium, lobby, dining facilities, pool area and guest rooms. This investment is in addition to the recent $1 million in upgrades to the property’s Wi-Fi system and guest room bedding. Prism currently manages more than 30 hotels in urban, suburban and resort locations for multiple institutional and private owners.
NEW YORK CITY — American Realty Capital Hospitality Trust (ARC Hospitality) has entered into an agreement to acquire Equity Inns’ lodging portfolio for $1.93 billion. Subsidiaries of W2007 Grace I and WNT Holdings, which are both indirectly owned by one or more Whitehall Real Estate Funds, are selling the 126-hotel, 14,934-room portfolio. The portfolio is franchised by various global hotel brands, including Hilton Hotels & Resorts, Marriott International, Hyatt Hotels and InterContinential Hotels Group, and includes numerous well-known hotel flags, including Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard, Residence Inn, Hyatt Place and Holiday Inn. When complete, the acquisition will increase ARC Hospitality’s portfolio to 132 hotels totaling 16,115 rooms. Closing of the acquisition is subject to customary franchisor and lender approvals and the deal is expected to close in fourth quarter 2014. RCS Capital acted as financial advisor to the buyer, while Goldman Sachs & Co. and Deutsche Bank Securities advised the sellers. It is anticipated that Deutsche Bank Securities and Goldman Sachs & Co. will provide financing in connection with the acquisition.
NEWARK, CALIF. — Hilton Worldwide and DoubleTree by Hilton have opened the 315-room DoubleTree by Hilton Newark-Fremont in the East Bay. The hotel is located at 39900 Balentine Drive. It is situated off Interstate 880 in the East Bay/Silicon Valley area between Oakland and San Jose. The property is owned by SM Broadway Corporation and managed by Hotel Managers Group.
BEDFORD PARK, ILL. — Developer The Welgarz Co. and general contractor William A. Randolph have broken ground on the new 148-room Hyatt Place Hotel at Midway Airport in the Chicago suburb of Bedford Park. The six-story property will include an indoor swimming pool, bar/café, lounge and meeting rooms. The project is located at 6550 Cicero Ave. Legat Architects is providing architectural design services, and Tech 3 Consulting is serving as civil engineer.
SAN ANTONIO — Hilton Worldwide has opened the new 111-suite Home2 Suites by Hilton San Antonio Airport, the second Home2 Suites brand hotel in the San Antonio metro area. The four-story property is in proximity to the San Antonio International Airport, as well as the River Walk, SeaWorld San Antonio, Six Flags Fiesta Texas and the AT&T Center. Located at 94 N.E. Loop 410, the hotel features a fitness center, laundry center, heated outdoor pool, fire pit and complimentary breakfast. Baywood Hotels owns and manages the property. Hilton plans to open five additional Texas locations of the Home2 Suites brand by the end of this year.
WAILUA, HAWAII — Coco Palms Hui LLChas entered into a management agreement with an affiliate of the Hyatt Hotels Corporationto manage the 363-room Coco Palms Resort on Kauai. The resort is located in Wailua, on the eastern coast of Kauai. It will continue to operate as the Coco Palms Resort under the Hyatt umbrella. The resort has been shuttered since 1992 when it was damaged by Hurricane Iniki. The Coco Palms is set to undergo a major revitalization next year, with a re-opening date scheduled for early 2017. The property was originally constructed in 1953. It was made famous in 1961 when the movie “Blue Hawaii” was filmed on its grounds – the same grounds that were once home to Kauai’s last reigning queen, Queen Deborah Kapule Kekaiha`akulou. The resort’s redevelopment plan will preserve the original footprint of the property and its signature lagoon. The new efforts will also include an on-property community center that will highlight the cultural significance of the site, as well as the area’s native culture, history and arts.
CHARLOTTE, N.C. — Homewood Suites by Hilton has opened a four-story, 117-suite hotel at 12030 Copper Way in Charlotte’s Ballantyne neighborhood. The hotel, known as Homewood Suites by Hilton Charlotte Ballantyne Area, will be situated near the Ballantyne Corporate Park, Toringdon Circle and Ballantyne Village. Tara of Ballantyne LLC owns the hotel and has tapped Tara Hospitality Group to manage the property.