Le Méridien Arlington Trades for $56.5M

This transaction follows by a few weeks Carey Watermark Investors 2's acquisition of Le Méridien Arlington, a boutique hotel in nearby Rosslyn, VA, which traded for $56.5 million or $366,883 per key.

Hotel investment sales in the District have been increasing over the past eighteen months after a relative drought of deals, according to Savills Studley Executive Managing Director Marc Magazine.

Using Real Capital Analytics data, Magazine calculates that in 2013 the average sale price for a DC area hotel was $240,048 per key. In 2014 the average price per key moved to $356,483, while in 2015 hotel sales averaged over $450,000 per key in Washington, DC.

Rising Sales Prices

Indeed, Mast Capital points out that the Graham Hotel trade tops the sale of the city's Ritz Carlton for $581,400 per key, or $50 million, in February. One sale it didn't top was the trade of five-star Capella hotel, which is also in Georgetown. Locally-based CtF Development acquired the ultra-luxury hotel for $65 million or $1.3 million per room. It plans to convert the 59,800 square foot hotel, located alongside the C&O Canal, into a Rosewood flag. Currently there are 49 guest rooms and suites.

The rising valuations suggest that the best opportunities have already been snapped up. For example, Mast Capital's Miguel has been looking for other hotel properties in the area to buy now that he has sold off the company's only holding here. But he hasn't found anything. So he is investigating opportunities in the area's multifamily asset class.

WASHINGTON, DC-Miami-based Mast Capital announced it has sold the 57-room Graham Hotel Georgetown for $37 million, or $649,000 per key -- among the top range of price per key hotel trades in the District for this cycle. The buyer is Legacy Hotel Group, based in Elk River, MN.

Andy Wimsatt, Ian Banger, Christian Charre, Paul Weimer and Natalie Castillo of CBRE represented Mast Capital and brokered the sale. Nelson Migdal of Greenberg Traurig transacted the deal.

Public records show the hotel last traded for $16.4 million in 2011 as the Hotel Monticello.

Located at 1075 Thomas Jefferson St NW, the Graham Hotel is a boutique hotel located within Georgetown's Historic District that underwent a multi-million dollar renovation in 2013. After that, the hotel's NOI more than quadrupled Mast Capital CEO Camilo Miguel Jr., told GlobeSt.com.

Le Méridien Arlington Trades for $56.5M

This transaction follows by a few weeks Carey Watermark Investors 2's acquisition of Le Méridien Arlington, a boutique hotel in nearby Rosslyn, VA, which traded for $56.5 million or $366,883 per key.

Hotel investment sales in the District have been increasing over the past eighteen months after a relative drought of deals, according to Savills Studley Executive Managing Director Marc Magazine.

Using Real Capital Analytics data, Magazine calculates that in 2013 the average sale price for a DC area hotel was $240,048 per key. In 2014 the average price per key moved to $356,483, while in 2015 hotel sales averaged over $450,000 per key in Washington, DC.

Rising Sales Prices

Indeed, Mast Capital points out that the Graham Hotel trade tops the sale of the city's Ritz Carlton for $581,400 per key, or $50 million, in February. One sale it didn't top was the trade of five-star Capella hotel, which is also in Georgetown. Locally-based CtF Development acquired the ultra-luxury hotel for $65 million or $1.3 million per room. It plans to convert the 59,800 square foot hotel, located alongside the C&O Canal, into a Rosewood flag. Currently there are 49 guest rooms and suites.

The rising valuations suggest that the best opportunities have already been snapped up. For example, Mast Capital's Miguel has been looking for other hotel properties in the area to buy now that he has sold off the company's only holding here. But he hasn't found anything. So he is investigating opportunities in the area's multifamily asset class.