Noble Investment Group Buys Embassy Suites Cleveland-Beachwood
- Oct 08, 2012
Atlanta-based Noble Investment Group, a leading private lodging and hospitality organization, has purchased the Embassy Suites Cleveland/Beachwood hotel in Beachwood. It is the investor group’s sixth acquisition this year.
The Embassy Suites Cleveland-Beachwood is located at 3775 Park East Drive. It offers 216 rooms in an excellent location, close to first-class retail and dining offerings, as well as corporate headquarters for companies such as Diversified Realty Corp., Aleris and TOA Technologies. It is also near the new state-of-the-art University Hospitals Ahuja Medical Center and Case Western Reserve University.
The hotel was offered for sale in July on the Auction.com Web site with a starting bid of $2.5 million. Although Noble did not disclose the purchase price, Cuyahoga County land records show that NF II Beachwood L.L.C., an affiliate of the Noble Investment Group, paid $8.2 million for the property in a deal that closed Friday, Sept. 28. Cuyahoga County valued the hotel at $16.8 million.
Noble plans to invest $8.6 million to improve the property and significantly upgrade and enhance its amenity offerings and guest experiences. ”We are pleased to make this investment, our 17th over the past 16 months, in a market with a strong mix of new and existing stable demand generators,” said Rodney Williams, Noble’s chief investment officer and a managing principal, in a news release. “Noble was able to acquire this asset at a substantial discount to replacement and will invest nearly $40,000 per suite to maximize the asset’s position within this vibrant marketplace.”
Marcus & Millichap reports that many hotels in northeast Ohio are seeing increased bookings as crews working the Utica shale formation require housing during the work week. Hotel occupancy in the midwestern United States continues to recover from the low level of the recession three years ago. Occupancy in Ohio rose to 56.5 percent, partly reflecting the influence of oil and gas exploration on the northeast portion of the state. Marcus & Millichap also reports that sales of nationally branded select-service, limited-service and economy hotels spiked more than 60 percent over the past year, with most of the sales occurring in Illinois, Ohio and Wisconsin.
Charts courtesy of Marcus&Millichap.
Photo credits: www.hotels.com