Monthly Archives: April 2014
From Hotels Magazine April 2014
Concord Hospitality Enterprises announced on Monday the sale of 13 select-service U.S. hotels to an undisclosed “global investment fund” for approximately $240 million in an all-cash transaction.
Public records show the purchasing company created Delaware-based subsidiaries each named Black Sapphire C to buy the properties. Concord Hospitality Enterprises, Raleigh, North Carolina, will continue to operate the hotels under long-term management agreements.
“This sale is a continuation of our on-going plan to strategically sell stabilized assets while retaining management,” said Mark Laport, president and CEO of Concord Hospitality. “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.”
The hotels bought in the transaction include the:
• 101-room Courtyard by Marriott Dayton – University of Dayton, located in Dayton, Ohio
• 102-room Courtyard by Marriott Pittsburgh Greensburg, located in Greensburg, Pennsylvania
• 135-room Courtyard by Marriott Reading Wyomissing, located in Reading, Pennsylvania
• 124-room Courtyard by Marriott Pittsburgh Airport Settlers Ridge, located in Pittsburgh, Pennsylvania
• 124-room Courtyard by Marriott Pittsburgh Washington/Meadow Lands, located in Washington, Pennsylvania
• 108-room Fairfield Inn and Suites Cumberland, located in Cumberland, Maryland
• 110-room Fairfield Inn & Suites Pittsburgh Neville Island, located at 5850 Grand Avenue in Pittsburgh
• 108-room Fairfield Inn & Suites Parsippany, located in Parsippany, New Jersey
• 194-room Hampton Inn Cleveland-Downtown, located in Cleveland
• 132-room Hilton Garden Inn Dallas/Arlington, located in Arlington, Texas
• 136-suite SpringHill Suites Columbus OSU, located in Columbus, Ohio
• 156-suite SpringHill Suites Houston Intercontinental Airport, located in Houston, Texas
• 120-suite SpringHill Suites Chicago Waukegan/Gurnee, located in Waukegan, Illinois
New projects and renovations are boosting competition
By Sean Adkins, the York Daily Record UPDATED: 04/01/2014
The Hampton Inn & Suites in York Township includes an indoor pool. Soon, a bank and a restaurant are likely to open locations on the property.
David Hogg is the first to admit that building the new Hampton Inn & Suites in York Township wasn’t easy. From site access problems to higher-than-expected development costs, the project overcame more than a few obstacles before the hotel opened its doors in March, said Hogg, CEO of Springwood Hospitality. The property at 2159 S. Queen St. is owned by a partnership that is partially owned and managed by Springwood Hospitality.
Despite the challenges of the project, Hogg said he knew the area was ready for a new hotel. “What we are seeing happening in the hotel market is that there are brands that are losing their appeal,” he said. “We made a conscious effort to put this hotel in an area that we can be dominte.”
“I believe that when new properties come on the market, it raises the bar for many of the existing hotels,” said Anne Druck, president of the York County Convention and Visitors Bureau. But to come on the market, some hotel projects have had to jump some hurdles.
In the case of the Hampton Inn, the developers had to deal with access issues that dated back to before the property was home to the now closed Wright Bros. Lincoln Mercury dealership, Hogg said. “Being so close to I-83 and York, it’s the best site for a hotel in York County,” Hogg said. “But we had to solve the access problem. That’s why the dealership didn’t make it.”
To tackle the entrance and exit issues, Hogg’s company elected to demolish the closed Make Believin’ costume store and Big Boys Toys in favor of an entrance to the hotel from Pauline Drive. In addition, the company added an entrance from South Queen Street that partially cuts through a nearby gas station, Hogg said.
Another challenge for the project was expense. Developers ended up having to take on more storm-water management work than initially anticipated, Hogg said. “Our development costs went significantly over budget,” he said. “We had to do some utility line relocations that we didn’t foresee.” There are plans to lease two pad sites at the hotel that will help cover those costs, Hogg said.
Another element that helped make the project work was the cooperation of York Township. The municipality agreed to an incentive program in which taxes on improvements made to the property would be phased in over 10 years. “It made the numbers work, even though the property was expensive,” Hogg said.