WASHINGTON, D.C.—Mast Capital and CBRE Hotels have announced the sale of The Graham Hotel Georgetown, a 57-room upscale boutique property located within the Georgetown Historic District. Since the hotel underwent a multi-million dollar renovation in 2013, its profitability has more than quadrupled, leading to its sale as one of the highest price per key metrics ever in Washington, D.C.—$649,000 per key at $37 million.
“We knew this property had great potential when we first started plans to transform it into The Graham. The community fully embraced the new vision for it,” said Camilo Miguel Jr., CEO of Mast Capital. “We’re thrilled to have led the expansion and rebranding of this iconic property in this high barrier to entry market.”
CBRE Hotels’ investment sales team, led by Andy Wimsatt and Ian Banger of CBRE’s Washington, D.C., office, and Christian Charre, Paul Weimer and Natalie Castillo of CBRE’s Miami office, represented the seller, Miami-based Mast Capital, and brokered the sale to Legacy Hotel Group, LLC. Nelson Migdal of Greenberg Traurig transacted the deal.
“Georgetown’s scarce hotel inventory, compounded with stringent city regulations on redevelopment, creates one of the highest barrier-to-entry markets in the region,” said Mr. Wimsatt, Managing Director, CBRE Hotels. “The sale price also makes it one of the highest per-key transactions in D.C. history.”
The last two important hotel transactions in Georgetown were the sale of the Ritz Carlton for $50M at $581,400 per key, in February 2016 and the sale of the five-star Capella for an undisclosed price in March 2016.
Mast Capital originally purchased the property in 2011 as Hotel Monticello for $16.4 million at $431,000 per key. By 2013, they had facilitated a multi-million dollar renovation and expansion to upgrade the hotel’s stature, positioning it as a true luxury boutique accommodation. Expanding from 38 to 57 keys, each of the extravagant rooms and suites has oversized bathrooms adorned with marble accents. The renovations also included the creation of two new signature food and beverage venues: An onsite restaurant, The Alex, and the famous Observatory, a destination rooftop bar with stunning views of the Georgetown Waterfront on the Potomac River.
The Graham Georgetown is adjacent to the retail and shopping-dense corridor of M Street, which includes high-end shops such as Kate Spade, Lululemon, Rag & Bone, Jonathan Adler, North Face and Brooks Brothers. It is also within walking distance to Georgetown University and the West End of Washington, D.C.
