Hotel Management and Development Company's Sale Coincides With Construction of 10 Hotels Set to Open in the Next 18 Months
Raleigh, NC-based Concord Hospitality Enterprises Co. sold a 13-hotel portfolio to companies owned by global investment fund Abu Dhabi Investment Authority in an all-cash transaction totaling approximately $240 million. Concord will stay on long-term to manage the hotels.
The portfolio consists of 1,650 rooms across 11 Marriott and two Hilton-branded hotels. The hotels were constructed, on average, less than five years ago and were either developed, rebranded or updated by Concord.
The portfolio is made up of the 120-room SpringHill Suites Chicago in Waukegan, IL; the 108-room Fairfield Inn & Suites Cumberland in Cumberland, MD; the 108-room Fairfield Inn in Parsippany, NJ; the 194-room Hampton Inn in Cleveland, OH; the 136-room SpringHill Suites by Marriott in Columbus, OH; the 101-room Courtyard by Marriott in Dayton, OH; the 102-room Courtyard Marriott in Greensburg, PA; the 124-room Settlers Ridge Courtyard in Pittsburgh, PA; the 110-room Fairfield Inn & Suites Pittsburgh in Pittsburgh, PA; the 135-room Courtyard Reading Wyomissing in Reading, PA; the 124-room Courtyard by Marriott Washington Meadow in Washington, PA; the 132-room Hilton Garden Inn Dallas/Arlington in Arlington, TX and the 156-room SpringHill Suites Houston Intercontinental in Houston, TX.
"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."
In addition to the sale, Concord has financing in place for 10 hotels currently under construction at a cost of approximately $440 million. The hotels are expected to open within the next 18 months. The company also has eight premium branded hotels in development at a cost of approximately $400 million.
Mark Elliott of Hodges Ward Elliott coordinated the disposition on behalf of the selling venture.
Please see CoStar Comp #2997708 for more information on the transaction.