Acquisitions Continue Apace Across U.S.

NATIONAL REPORT—Acquisitions are in the news across the country. Washington, DC-based The Wardman Group has acquired Ocean Gate Resort, a 65-room waterfront property located on Southport Island near the popular destination of Boothbay Harbor in Maine.

Scout Hotel & Resort Management will operate the resort, which opened in the mid-1950s and had been owned and operated by GEM Hospitality Group since 2006.

“Ocean Gate Resort has been a true labor of love for our family, and we couldn’t be more pleased with The Wardman Group’s interest in it,” said Frank Gaynor, owner of GEM Hospitality Group. “We have complete confidence that Wardman and Scout are the right team to shepherd the resort into its next phase.”

In the off-season, Wardman plans to selectively upgrade the guestrooms; modernize the hotel’s dining room to include the creation of a private dining room; and will convert an under-utilized fitness center into a second meeting room.

The 33-acre resort is open seasonally from May through October. It features a range of guestroom options, including standard guestrooms, one- and two-bedroom suites, and two stand-alone cottages. It offers recreational facilities that include a heated pool and hot tub, floating dock with kayaks and canoes, a nine-hole miniature golf course, and a tennis and basketball court.

Thad Paul, founder/CEO of The Wardman Group, commented, “Ocean Gate Resort has many great qualities for families, couples and groups seeking a Maine getaway, and it perfectly balances a secluded setting with proximity to Boothbay Harbor. We appreciate the Gaynor family’s excellent stewardship of the resort over the past 11 years, and look forward to bringing it to its full potential.”

Alaska Acquisition

Way up north, Apple Hospitality REIT Inc. has acquired the 135-room Home2 Suites by Hilton in Anchorage, Alaska, for approximately $24 million or $178,000 per key. Located at 4700 Union Square Dr., the hotel opened in December 2015.

“We are pleased to add this extended-stay hotel to our portfolio and increase our presence in the dynamic Anchorage market,” said Nelson Knight, EVP/chief/investment officer of Apple Hospitality REIT. “The hotel is located in midtown Anchorage and benefits from a variety of corporate and leisure demand drivers, including nearby corporate offices, large education and healthcare facilities, oil and gas exploration and production, and state parks. This is the fifth hotel we have acquired in the last three months.”

Following this acquisition, the Apple Hospitality portfolio includes 239 hotels, with approximately 30,300 guestrooms throughout 34 states.

Southwest Sale

In New Mexico, The Siegel Group Nevada Inc. acquired a 244-unit hotel in Albuquerque previously operated under both the Travelodge and Super 8 brands for $4 million. This acquisition marks the second location The Siegel Group has opened in Albuquerque since first entering the market in mid-2015.

The property is located off the intersection of Interstate 40 and Interstate 25 and proximate the Albuquerque Convention Center, the University of New Mexico and historic Old Town. Built in phases between 1985 and 1989 and situated on a five-acre parcel, the hotel complex totals approximately 86,790 sq. ft.

Included with the acquisition was a cellphone tower leased to a national operator as well as some 70 acres the company will either sell off or develop in a build-to-suit arrangement, according to the company.

Stephen Siegel, president of The Siegel Group, said, “We are excited to expand our presence in New Mexico and introduce our newest brand, Siegel Suites Select, to the Albuquerque market. We opened our first branded location in Albuquerque approximately two years ago, which has been a success.”

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