Jamestown Properties agreed to sell its 356-room Madison Hotel in Washington, DC, to Loews Hotels & Resorts, a New York-based owner and operator wholly owned by Loews Corp. (NYSE:L). The transaction will close next month.
While the sale price was undisclosed, Jamestown picked up the hotel and an adjacent office building from MEPT/New Tower Trust Co. in January 2011 for more than $120 million. See CoStar COMPS #2040390 for more information.
The 11-story, 275,033-square-foot hospitality property is at 1177 15th St. NW in the District’s East End submarket. Jamestown completed a $23 million renovation this year. It contains retail space occupied by the Federalist restaurant and PostScript Bar and Lounge. The asset also has 12,000 square feet of meeting and event space.
The Madison is the second major hotel purchase announced by Loews Hotels this year. The first was the Renaissance Hollywood Hotel next to the Hollywood & Highland Center, which the company acquired from CIM Group in June (see CoStar COMPS #2493897 for details). The 632-room property was rebranded Loews Hollywood Hotel and is undergoing a $26 million renovation.
“This acquisition represents the start of our program to double the size of our branded hotel portfolio over the next three to five years,” Paul Whetsell, president and CEO of Loews Hotels, said in a June statement. “Our primary focus is to continue expanding our portfolio into major North American gateway cities, such as Boston, Chicago, San Francisco, Washington, DC, New York, Dallas, Toronto and Seattle, as well as select destination resorts.”
When the Madison deal is completed, Loews Hotels will own and/or operate 19 hotels and resorts in the U.S. and Canada.