Concord Hospitality Sells 13-Hotel Portfolio for $240M
- Apr 22, 2014
Concord Hospitality Enterprises, of Raleigh, N.C., has sold a portfolio of 13 premium-branded, select-service hotels to companies owned by a global investment fund for approximately $240 million in an all-cash transaction, Concord announced Monday. The buyer was not disclosed.
Concord will continue to operate the hotels under a long-term management agreement. The portfolio totals 1,650 rooms/suites in 11 Marriott and two Hilton-branded hotels.
Mark Elliott of Hodges Ward Elliott, Atlanta, was the lead broker in the transaction.
“This sale is a continuation of our ongoing plan to strategically sell stabilized assets while retaining management,” Concord president/CEO Mark Laport said in a release. “This gives our investors an attractive return on their development investment while providing long-term, sustainable growth opportunities for the companies that buy these assets.”
With the exception of one hotel, Laport added, the average age of the hotels is less than five years, and all are in “excellent physical condition,” having been developed, rebranded or substantially updated by Concord.
Concord will continue to focus its acquisition and development efforts in locations with high or growing concentrations of medical, educational, banking and technology industries, Laport continued, while growing its third-party management business through retained management of sold assets and strategic alliances with other ownership groups.
The company currently has 10 hotels under construction at a cost of about $440 million with financing in place and expects to open all of them over the next 18 months. In addition, Laport said, Concord has eight further premium-branded hotels “well along the development process at a cost of approximately $400 million.”
A Concord spokesperson provided Commercial Property Executive with a list of the 13 hotel properties just sold:
- Courtyard by Marriott Dayton – University of Dayton, 101 rooms, 2006 Edwin C. Moses Blvd., Dayton, Ohio.
- Courtyard by Marriott Pittsburgh Greensburg, 102 rooms, 700 Power Line Drive, Greensburg, Pa.
- Courtyard by Marriott Reading Wyomissing, 135 rooms, 150 N. Park Road, Reading, Pa.
- Courtyard by Marriott Pittsburgh Airport Settlers Ridge, 124 rooms, 5100 Campbells Run Road, Pittsburgh
- Courtyard by Marriott Pittsburgh Washington/Meadow Lands, 124 rooms, 1800 Tanger Blvd., Washington, Pa.
- Fairfield Inn & Suites Cumberland, 108 rooms, 21 N. Wineow St., Cumberland, Md.
- Fairfield Inn & Suites Pittsburgh Neville Island, 110 rooms, 5850 Grand Ave., Pittsburgh
- Fairfield Inn & Suites Parsippany, 108 rooms, 3535 US Highway 46 East at Cherry Hill Road, Parsippany, N.J.
- Hampton Inn Cleveland-Downtown, 194 rooms, 1460 E. Ninth St., Cleveland
- Hilton Garden Inn Dallas/Arlington, 132 rooms, 2190 E. Lamar Blvd., Arlington, Texas
- SpringHill Suites Columbus OSU, 136 suites, 1421 Olentangy River Road, Columbus, Ohio
- SpringHill Suites Houston Intercontinental Airport, 156 suites, 15840 John F. Kennedy Blvd., Houston
- SpringHill Suites Chicago Waukegan/Gurnee, 120 suites, 4101 Fountain Square Place, Waukegan, Ill.
Concord Hospitality Enterprises owns and/or manages more than 90 hotels totaling more than 13,000 guest rooms in 21 states and 2 Canadian provinces.