WASHINGTON, DC—Shortly before the start of the July 4th weekend, Qatar's Al Rayyan Tourism Investment Co., or ARTIC, announced it had acquired the St. Regis Washington DC. The company, which is the international hotel investment and hospitality subsidiary of Al Faisal Holding Co., did not provide a sales amount.
A source, however, tells GlobeSt.com that the rumor is the 182-room property has traded for approximately $750 per key. This rumor has not been confirmed with another source.
A request for comment from the New York City-based owner, Westbrook Partners, was not immediately returned.
The sale of the luxury hotel, which is located at the intersection of 16th and K streets, also included an adjacent 22,000 square foot parcel with development potential.
The property will stay a St. Regis flag, according to ARTIC.
"I am particularly pleased with this acquisition; St. Regis Washington D.C. fits perfectly with our expansion strategy and investment criteria; it has an extraordinary location, superb asset quality and beautiful architecture," says H.E. Sheikh Faisal Bin Qassim Al Thani, chairman of ARTIC, in a prepared statement.
This is the company's fourth hotel acquisition in the US, following deals in Chicago, Miami and New York.
The St. Regis Washington has traded a handful of times in recent years. The aftermath of the recession proved difficult for previous owner Claret Capital, a private equity firm in Ireland, which purchased the hotel at the height of the market in 2007 for $170 million.
By 2011 it had gone into foreclosure -- after teasing the market a bit with rumors that it was struggling. Barclays Capital wound up foreclosing on the luxury hotel, scooping up the $25-million mezzanine piece.
Later that year, Westbrook Partners acquired it for $100 million.
Like all properties in the District, the hotel's valuation has surged in the last ten years. In 2005, a joint venture involving Brickman Associates and New Valley Corp. acquired the property from Starwood Hotels and Resorts, paying $47 million.
In separate news, Westbrook Partners has acquired Tier REIT's G Street portfolio for $202 million. We reported on this pending transaction in May.
The buildings are located at 1325 G St., NW and 1341 G St., NW.
Editor's note: This article was updated to reflect the rumor that the hotel is trading at approximately $750 per key.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
