SEATTLE – A joint venture between Provenance Hotels and Thayer Lodging Group has acquired the 120-room Hotel 1000 in Downtown Seattle for a reported $63 million. The Forbes Four Star-rated hotel is located at the intersection of 1000 First Avenue and Madison Street, near the waterfront along Elliott Bay. There are 10 floors of upscale condominiums that sit atop the 14-story hotel. The hotel portion also features a 100-seat restaurant, spa, state-of-the-art golf simulator, and 9,100 square feet of conference and event space. This is the joint venture’s first acquisition. It is Thayer’s third acquisition through its $300-million Thayer Fund VI. Provenance will manage the hotel.
Hospitality
ORLANDO, FLA. — HFF has brokered the sale of the Holiday Inn Resort Lake Buena Vista, a 503-room hotel located at 13351 S. Apopka Vineland Road in Orlando. The transaction is the largest hotel sale brokered in Orlando this year, according to Real Capital Analytics. The hotel is a Walt Disney Good Neighbor Hotel, with 7,000 square feet of meeting space, a resort-style outdoor swimming pool, a new Applebee’s Neighborhood Grill & Bar, a fitness center, basketball court, children’s club, gift shop and business center. ROCH Capital purchased the asset from Vista Hospitality Co. free and clear of debt. Michael Weinberg and Max Comess of HFF represented Vista in the transaction. The hotel is part of a three-property portfolio that HFF is marketing on behalf of Vista; the other properties include Crowne Plaza Orlando Downtown and the Holiday Inn Express & Suites Fort Lauderdale. Portfolio Hotels will manage the asset on behalf of ROCH Capital.
NORWALK, CONN. — InterContinental Hotels Group (IHG) has opened its first EVEN Hotels property for the recently launched EVEN brand. Located at 426 Main Ave. in Norwalk, the 129-room hotel is designed to meet guests’ desire to maintain a healthy lifestyle while traveling. The hotel features a three-zone Athletic Studio, including a flex room for spinning and yoga classes, and healthy food and beverage options from its Cork & Kale Market and Bar. The EVEN Hotel Norwalk is owned and managed by IHG. The brand currently has four hotels in the pipeline: one in Rockville, Md.; one in Brooklyn, N.Y.; and two properties in midtown Manhattan.
BALTIMORE — The Mount Vernon Hotel located at 24 W. Franklin St. in Baltimore will soon be repositioned as the city’s first Hotel Indigo. Marc Tropp and Barry Dollman of Eastern Union Funding arranged roughly $14 million in acquisition and redevelopment financing through Virginia Heritage Bank for the conversion. EB5-investment firm Oriental Dolphins Investments provided an additional $6 million for the project. The development team for the 170-room hotel includes developer Shaffin Jetha of MVH Baltimore Hotel and general contractor Kinsley Construction. The project’s estimated completion date is spring 2015.
RICHMOND, VA. — Lingerfelt CommonWealth Partners has acquired Richmond Marriott West, a 242-room hotel located in Richmond’s affluent Glen Allen suburb. The hotel is part of Innsbrook Corporate Center, a mixed-use park with more than 8 million square feet of office space, stores, restaurants and multifamily housing. Lingerfelt’s affiliate, CommonWealth Lodging, will manage the hotel and oversee its multi-million renovation, which will wrap up by summer 2015. The hotel will remain open during the planned renovations. Lingerfelt, which is headquartered in the Innsbrook Corporate Center, owns roughly 1 million square feet of office space in close proximity to the hotel.
RALEIGH, N.C. — HFF has secured a $16.6 million construction loan for the development of Aloft Raleigh, a 135-room hotel at 2100 Hillsborough St. near North Carolina State University in Raleigh. Upon completion in fall 2015, the hotel will feature a fitness center, swimming pool, outdoor deck and WXYZ Bar, in addition to the brand’s Re:Mix lounge, Re:Fuel dining area and In-Touch business center. Mark Remington of HFF arranged the five-year construction loan through First Tennessee Bank on behalf of the borrower, a partnership between The Bernstein Cos., TME Investments and Michael Sandman.
CHARLOTTE, N.C. — Embassy Suites Hotels and developer BPR Properties have begun construction on Embassy Suites Charlotte Uptown, a 250-suite hotel at 401 E. Martin Luther King Jr. Blvd. The hotel, which will feature 7,000 square feet of meeting space and an on-site restaurant, is slated to open in June 2016. The hotel will be the ninth Embassy Suites in North Carolina, and it will feature a 24-hour fitness center, business center and an indoor pool.
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.
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.