RALEIGH, N.C.—Concord Hospitality Enterprises has announced the sale of 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 ongoing 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.”
Mark Elliott of Hodges Ward Elliott was the lead broker in the transaction.
“Concord remains very committed to developing in markets where we see long-term potential,” Laport said. “We currently have 10 hotels under construction at a cost of approximately $440 million with financing in place and expect to open all of them over the next 18 months. We have an additional eight premium branded hotels well along the development process at a cost of approximately $400 million.”
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.
