Chartres Lodging Group principal Bruce Blum tells GlobeSt.com the portfolio was put under contract in the summer and would have closed sooner had it not been for the "capital markets dislocation," which he says caused numerous transactions to be delayed or not close at all. The sale price was not disclosed by the parties involved, but one industry expert tells GlobeSt.com the portfolio likely traded for around $500 million, or $100,000 per key. The sale closed yesterday.
"We addressed the owners' need to sell all the properties at once," Blum tells GlobeSt.com. "We're confident we got a discount to market value."
The largest asset in the portfolio is the 1,840-room, 38-floor Adams Mark in Dallas. Built in 1958 and renovated last year, the property includes 230,000 sf of meeting space. The property sits at 555 S. McDowell St., on the city's light rail line and across the street from John Carpenter Plaza Park. The new ownership plans to spend $87 million to renovate and reposition the property as the Sheraton Dallas Hotel. Sheraton already has assumed management of the hotel. The rebranding is scheduled for spring 2008.
The next largest property is the 1,225-room, 22-floor Adams Mark in Denver that has 133,000 sf of meeting space. The property is located in Downtown Denver, one block off Civic Center Park. It was built in 1961 and last renovated in 1997. The new ownership plans to spend $70-million to renovate and reposition the hotel as the Sheraton Denver Hotel. Like the Dallas property, Sheraton already has assumed management of the hotel and the rebranding is scheduled for spring 2008.
The property for which renovation plans have already been revealed is the 910-room, 18-floor Adams Mark in St. Louis, which was built in 1984 and renovated in 2005. The new ownership plans to invest $63 million t0 renovate and reposition the property as the Hyatt Regency St. Louis Riverfront. Hyatt assumes management of the property now. The rebranding is scheduled for spring 2008.
The other two assets in the transaction are the 481-room Adams Mark hotel in Buffalo, built in 1980; and the 332-room Adams Mark in Indianapolis, which was built in 2000. The Buffalo property will undergo an $18-milion renovation. Both properties are now being operated by Kokua Hospitality, an independent management affiliate of Chartres Lodging.
Prior to the Adams mark acquisition, Chartres had asset management responsibilities for a 14,000-room portfolio of luxury hotels, resorts and conference centers throughout the US and Japan. Oxford's principals and employees are direct investors in 65% of the portfolio. Past investment partners have included Dubai Investment Group and Perry Capital.
When GlobeSt.com reported on the pending transaction in October , a source with HBE told GlobeSt.com the company was selling the hotels as part of a plans to streamline the company's operations and focus on its core design-build business. The sale completed the company's divestiture of its hotel assets.
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