RALEIGH, NC—Concord Hospitality Enterprises, headquartered here, said Monday it had sold a portfolio of 13 select-service hotels, including 11 with Marriott brands and two Hilton-branded, for a total of about $240 million in cash. The buyers were not identified, except as “companies owned by a global investment fund,” nor were the locations of the assets themselves.
Crain's Cleveland Business reported earlier this month that Concord had sold the Hampton Inn Cleveland Downtown for $19.8 million to an entity known as Black Sapphire C Cleveland 2014 Inc. According to Delaware state records, Black Sapphire C Cleveland was one of more than a dozen C corporations that were incorporated in the state on Jan. 9 under the Black Sapphire name.
Similarly, recent published reports on sales of Concord properties in Dayton, OH and Columbus, OH identify the buyers as Black Sapphire C Dayton 2014 Inc. and Black Sapphire C Columbus 2014 Inc., respectively. Other C corps established in Delaware on Jan. 9 include similarly named entities referring to Chicago, Dallas, Houston, Pittsburgh, Reading, PA and Parsippany, NJ.
Mark Elliott of Hodges Ward Elliott was the lead broker in the transaction. Concord says it will continue to operate the hotels under a long-term management agreement.
“This sale is a continuation of our ongoing plan to strategically sell stabilized assets while retaining management,” says Mark Laport, president and CEO of Concord Hospitality. It gives the company's investors “an attractive return on their development investment while providing long-term, sustainable growth opportunities for the companies that buy these assets.” With one exception, he adds, the assets average less than five years old, and all were “developed, rebranded or substantially updated by Concord.”
Long term, Concord plans to continue focusing its acquisition and development efforts in locations with high or growing concentrations of medical, educational, banking and technology industries, while growing its third party management sector. The company has 10 hotels under construction with an aggregate cost of about $440 million, and plans to open them within the next 18 months.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
