OAK BROOK, IL—The Inland American Lodging Group has been on a hotel purchasing spree this year, and has just acquired three more, bringing their overall total this year to thirteen. The wholly owned subsidiary of Inland American Real Estate Trust, Inc., spent $189 million to pick up the Hotel Monaco Chicago, the Hotel Monaco Denver and the Hotel Monaco Salt Lake City, totaling 605 rooms. The properties form part of Kimpton Hotels & Restaurants' Hotel Monaco brand, a collection of historic buildings converted into boutique hotels.
"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 Marcel Verbaas, president and CEO of Inland American Lodging Advisor, Inc. “Being located in premier urban locations with multiple demand generators, these hotels are poised to provide superior yields and maintain market leadership.”
Inland American's recent purchasing spree includes acquiring an Andaz hotel in Napa, CA, and one in Savannah, GA, for about $115 million. The hotels, both part of Chicago-based Hyatt Hotels Corp.'s boutique lifestyle brand, were the second and third Andaz hotels in Inland American's portfolio, following the purchase of Andaz San Diego earlier this year. The company also recently acquired the Lorien Hotel & Spa in Alexandria, VA. The 107-key hotel traded for approximately $45 million.
The 14-story Hotel Monaco Chicago was opened in 1998. It was redeveloped from the historic 1912 Fisk Building and offers 191 guest rooms, including 22 suites, a fully-equipped fitness center, in-room spa services and about 4,100-square-feet of meeting space. The property sits downtown on the corner of North Wabash Ave. and East Wacker Pl.
The six-story Hotel Monaco Denver, formerly the city's historic Railway Exchange Building and the Art Modern Title Company Building, also opened in 1998. It features 189 guest rooms, including 29 suites, a fully equipped fitness center, full-service salon and spa and more than 4,000-square-feet of meeting space. The property is located on the corner of Champa St. and 17th St., just one block from the 16th Street Mall and within walking distance of the Colorado Convention Center, Coors Field and the Denver Performing Arts Complex.
The Hotel Monaco Salt Lake City was opened in 1999 in the former Continental Bank Building. The 15-story building has 225 guest rooms, including 24 suites, approximately 3,100-square-feet of meeting space, a fully equipped fitness center and in-room spa services. This property sits on the corner of 200 South and Main St. in the city's CBD and near the Salt Palace Convention Center and Capital Theatre.
"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,” Verbaas adds.
Kimpton Hotels & Restaurants will continue to manage the properties.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
