Monday April 21st, 2014 - 9:19AM
RALEIGH, NC—Concord Hospitality Enterprises 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 will continue to operate the hotels under a long-term management agreement. The portfolio is comprised of a total of 1,650 rooms representing 11 Marriott and two Hilton-branded hotels.
"This sale is a continuation of our on-going plan to strategically sell stabilized assets while retaining management,” stated 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.”
Laport added, “With the exception of one hotel, the average age of the hotels is under five years old, and all were developed, rebranded or substantially updated by Concord, so they bring with them our reputation for quality construction and adding value through best in class sales and operations management. Each hotel is in excellent physical condition, and we are working closely with the brands to implement any necessary Product Improvement Plans (PIP) to ensure the hotels sustain strong RevPAR premiums well into the future.”
Mark Elliott of Hodges Ward Elliott was the lead broker in the transaction. According to Laport, Concord will continue to focus 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 through retained management of sold assets and strategic alliances with other ownership groups.