DTC hotel sells less than half of what owner paid in 2016 – bizwest

This story unfolded for the first time BusinessDen.com, a BizWest news partner.

In the biggest sale of a Denver-area hotel since the start of the pandemic, a 461-room Denver Tech Center property changed hands for less than half the price it hit in 2016.

Last week, the Hyatt Regency Denver Tech Center, located at 7800 E. Tufts Ave., was sold to HRDTC Hotel Owner LLC, an affiliate of Ontario-based Westmont Hospitality Management. The sale price was $ 41.54 million, according to public records.

That’s a 57% drop from when the seller, CP Denver LLC – an entity affiliated with Columbia Sussex Management – purchased the property. He paid $ 96 million in September 2016, the records show.

Westmont and Columbia Sussex did not respond to separate requests for comment on Monday.

New York-based Square Mile Capital funded the deal last week, according to loan documents. The same company also provided a loan for the 2016 transaction.

The Hyatt Regency has 451 rooms, according to the seller’s website. It is one of the 10 largest hotels in the metropolitan area in terms of number of rooms. Within the DTC, he’s just behind the Denver Marriott Tech Center. In 2019, the hotel announced the completion of what it called “A multi-million dollar renovation of its rooms, lobby and public spaces.”

Bloomberg reported in january that Kentucky-based Columbia Sussex “braced itself to be one of the biggest losers in the pandemic housing crisis, as homeowners who delayed debt payments grapple with impatient lenders.” The publication said three of the company’s 49 hotels were in foreclosure and the company was prepared to sell two more to lenders.

The hospitality industry has been hit by the pandemic, especially properties in urban areas like DTC that cater to business travelers.

In terms of local hotel sales since the start of the pandemic, the Hyatt Regency leads the way sale of $ 38.5 million in December of the Indigo Hotel, a 180-room property near Union Station. This hotel was sold to McWhinney by its developer, meaning there was no previous sale to compare.

Denver Evaluator Keith Erffmeyer told BusinessDen last month that the government’s overall assessment of commercial property in Denver is expected to decline for the first time since the Great Recession. Hotels will drop the most on a median perspective, he said.

This story unfolded for the first time BusinessDen.com, a BizWest news partner.

In the biggest sale of a Denver-area hotel since the start of the pandemic, a 461-room Denver Tech Center property changed hands for less than half the price it hit in 2016.

Last week, the Hyatt Regency Denver Tech Center, located at 7800 E. Tufts Ave., was sold to HRDTC Hotel Owner LLC, an affiliate of Ontario-based Westmont Hospitality Management. The sale price was $ 41.54 million, according to public records.

That’s a 57% drop from when the seller, CP Denver LLC – an entity affiliated with Columbia Sussex Management – purchased the property. He paid $ 96 million in September 2016, the records show.

Westmont and Columbia Sussex did not respond to separate requests for comment on Monday.

New York-based Square Mile Capital funded the deal last week, according to loan documents. The same company also provided a loan for the 2016 transaction.

The Hyatt Regency has 451 rooms, according to the seller’s website. It is one of the 10 largest hotels in the metropolitan area in terms of number of rooms. Within the DTC, he’s just behind the Denver Marriott Tech Center. In 2019, the hotel announced the completion of what it called “A multi-million dollar renovation of its rooms, lobby and public spaces.”

Bloomberg reported in january that Kentucky-based Columbia Sussex “braced itself to be one of the biggest losers in the pandemic housing crisis, as homeowners who delayed debt payments grapple with impatient lenders.” The publication said that three of the company’s 49 companies …


Source link

About Sylvia Helt

Check Also

Ali Group and Webilt announce definitive merger agreement

CHICAGO AND NEW PORT RICHEY, FL – (COMMERCIAL THREAD) – Ali Holding Srl (“Ali Group”), …