Two Downtown Boutique Hotels Are Now For Sale
Where is the demand for downtown hotel assets? Several are on the market waiting for the right bid, but with one notable exception, there has been silence. And the market for quality assets is growing.
Lone Star Funds has put the Hotel Burnham (shown) on the market, while Clarion Partners is seeking a buyer for the Hotel Allegro. It will be interesting to see what these two hotels eventually sell for.
Lone Star bought the 122-room Burnham two years ago out of foreclosure, in a $35.2M deal. The firm hired CBRE to court bids for the property. Clarion paid $70M for the 483-room Allegro (pictured) in 2007 and completed a $20M renovation last year. JLL is handling bids for the Allegro, according to Crain's.
Kimpton operates both hotels and the Hotel Palomar, which went up for sale in February. Another Kimpton Hotel, the Kimpton Gray, is expected to open next month.
Other notable hotels on the market include Soho House Chicago, which will likely set a record per-room price when it lands a buyer. The biggest hotel sale of the year to date is Union Investment Real Estate's $315M purchase of Londonhouse from Oxford Capital. [Crain's]