Real EstateAcquisitionsCoralTree Hospitality Acquires Controlling Interest in Magnolia Hotels

CoralTree Hospitality Acquires Controlling Interest in Magnolia Hotels

DENVER—Tom Luersen, president of CoralTree Hospitality, announced that, in partnership with its parent company Lowe, CoralTree has acquired a controlling interest in the Magnolia Hotels brand from Denver-based Stout Street Hospitality. CoralTree will manage four of Magnolia’s six properties in Denver, Houston, St. Louis, and Omaha while licensing the name to the New Orleans and Dallas properties. The Magnolia brand is known for its independent properties that reflect the spirit of each location with personal service for both business and leisure travelers. With the addition of the six new Magnolia Hotels, CoralTree has a portfolio of 22 hotels and resorts throughout the United States.

“CoralTree is committed to purposeful growth,” said Luersen. “Magnolia Hotels is a great complement to our mission at CoralTree to work with distinctive, independently-minded properties. Magnolia hotels are known for capturing the spirit of the locations in which they operate which is in alignment with our operational goals to deliver a distinctive guest experience to our group, corporate travel, and leisure guests. We look forward to expanding the brand, when appropriate, to other metropolitan markets.”

The Denver, Houston, and St. Louis hotels will remain a part of the Tribute Portfolio’s distribution network including access to the Marriott Bonvoy loyalty program. Tribute Portfolio is a collection of independent boutique hotels bound by their spirit and heart for connecting people and places.

“For more than four decades, my family has owned and managed hotels throughout the United States, including the Magnolia brand which launched in 1995 with the opening of our Denver hotel,” said Sarah Holtze Treadway, president and co-CEO of Stout Street Hospitality. “It’s been a labor of love for all of us to see the brand expand into new destinations over the years. We are confident in CoralTree’s stewardship of the brand as they usher it into its next chapter and look forward to our partnership and pursuing new opportunities together.” Stout Street Hospitality will continue to asset manage its current portfolio as well as develop and manage future opportunities.

“The CoralTree and Stout Street teams are aligned in many ways from our roots as family-owned businesses to our values and the shared philosophy that every individual hotel should tell a unique story,” added Luersen. “We have both a common culture and similar histories.” CoralTree is a wholly-owned subsidiary of Los Angeles based Lowe, a real estate investment, development, and management firm founded nearly 50 years ago by Bob Lowe and now operated by his son’s Rob and Mike Lowe. Similarly, Steve Holtze originally formed Stevens Holtze Corp. in 1993 before handing the reigns to children Eric Holtze and Sarah Treadway under the Stout Street moniker in 2016.

The brand’s first property, Magnolia Hotel Denver, is located in what was formerly the American National Bank Building and is listed on the National Register of Historic Places. The 297-room property was restored to reflect its original appearance. The hotel, which opened in 1995, features Harry’s lobby lounge for dining, 13,450 square feet of meeting space, a library, and a fitness center. The property is located in downtown Denver with easy access to the Colorado Convention Center, Ball Arena, Coors Field, shopping, and entertainment along the 16th Street Mall, as well as many other local attractions and businesses.

Magnolia Hotel Houston opened in 2003 in Houston’s former Post Dispatch building, which is listed on the National Register of Historic Places. The 314-room Magnolia Hotel offers a fitness center, a rooftop pool and Jacuzzi, and a Club Room lounge and billiards area, as well as more than 16,000 square feet of meeting space. The Magnolia’s location is close to Minute Maid Park, the Toyota Center, the Houston Aquarium, Bayou Place, and the theater district.

The 145-room Magnolia Hotel Omaha is located in downtown Omaha. It is situated next to the area’s attractions including the Qwest Center, the historic Old Market, and Orpheum Theatre, as well as all the major corporate headquarters and offices downtown. It was named to the National Register of Historic Places in 1974 and brings together historic nuances with urban amenities such as The District, featuring American cuisine in a casual setting, a business center, and 8,000 square feet of meeting space.

Situated in downtown St. Louis, the 182-room Magnolia Hotel is within walking distance of numerous attractions including the America’s Center Convention Complex. Originally opened as the Mayfair Hotel in 1925, the St. Louis hotel is a boutique property that follows emulates hotel traditions. Listed on the National Register of Historic Places in 1979, the hotel has contemporary amenities such as Robie’s, which serves three meals a day, a fitness center, and 8,000 square feet of meeting space.