OAK BROOK, ILL. — Inland American Lodging Group Inc. has acquired three luxury boutique hotels from Kimpton’s Hotel Monaco collection for a total purchase price of $189 million. The properties — Hotel Monaco Chicago, Hotel Monaco Denver and Hotel Monaco Salt Lake City — comprise a total of 605 rooms.
With this purchase, Inland American has added 13 hotels to its portfolio in 2013. Kimpton Hotels & Restaurants will continue to manage these three properties.
“This acquisition of three market-leading hotels in excellent condition enhanced our portfolio’s geographic diversification and complements our recent acquisitions in the boutique, luxury hotel space,” says Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc., based in Oak Brook, Ill. “We are thrilled to expand our new relationship with Kimpton as we increase our investment in upper-upscale and luxury hotels through the addition of these high-quality assets.”
Hotel Monaco Chicago, located in the redeveloped 1912 Fisk Building at the corner of North Wabash Avenue and East Wacker Place in the downtown market, first opened in 1998. The 14-story building features 191 rooms, in-room spa services, a fitness center, the South Water Kitchen restaurant, and 4,100 square feet of meeting space.
The six-story, 189-room Hotel Monaco Denver also opened in 1998, after renovations to the Railway Exchange and Art Modern Title Company buildings at the corner of Champa and 17th streets. Amenities of the property include a fitness center, full-service salon and spa, the Panzano restaurant and more than 4,000 square feet of meeting space.
Finally, Hotel Monaco Salt Lake City opened in 1999 in the former Continental Bank Building at 200 South and Main streets in the central business district. The 15-floor building includes 225 guest rooms, a fitness center, in-room spa services, the Bambara restaurant and 3,100 square feet of meeting space.
“These hotels are well positioned to experience strong growth from the affiliation with Kimpton’s well-established Hotel Monaco flag and their exceptional locations and quality levels,” says Verbaas. “Being located in premier urban locations with multiple demand generators, these hotels are poised to provide superior yields and maintain market leadership.”
Inland American Lodging Advisor, based in Orlando, oversees more than 90 hotels totaling 18,000-plus rooms on behalf of owner Inland American Real Estate Trust, a non-traded REIT. Various brands including Westin, Marriott, Hilton, Hyatt, Fairmont and IHG, are represented in the portfolio.
Inland American Real Estate Trust is among the six REITs sponsored by the Inland Real Estate Investment Corp., which is part of the Oak Brook, Ill.-based Inland Real Estate Group of Cos.
— John McCurdy