WASHINGTON, DC-The Madison Hotel here has finally traded. Bentall Kennedy sold the landmark property along with a connected 95,000-square-foot office building for $123 million. Asset investment and management firm Jamestown is the buyer.
In partnership with Jamestown, the Madison hotel will be operated by Destination Hotels & Resorts. Jamestown plans to invest an additional $20 million into the 353-key, 13-suite hotel. The Madison also has 14,000 square feet of event space. Interior designer Dominick Coyne is handling the renovation.
The company is looking at other opportunities in the DC area, having just opened an office here at the start of the year, Michael Phillips, managing director for Jamestown and president of Jamestown Realty Co., tells GlobeSt.com. Potential acquisitions would include core and core plus transactions, as well as value-add opportunities such as the Madison. “At $266,000 per key we felt was a great value for purchasing a hotel here,” he says.
Indeed, the Madison is the latest in a series of large-sized hotel deals in the Washington, DC area–many of which closed at $400,000 per key, on average. To name just a few, Pebblebrook Hotel Trust acquired DC’s Hotel Monaco for $74 million, or $400,000 per key, and the Doubletree Bethesda Hotel and Executive Meeting Center for $67.1 million. Meanwhile, the Watergate Hotel was acquired for $45 million by Euro Capital Partners. Then there was transaction that broke the ice–LaSalle Hotel Properties’ $95-million acquisition of Sofitel Lafayette Square.