than a year ago to Jamestown.
WASHINGTON, DC-Loews Hotels & Resorts has agreed to acquire the iconic Madison Hotel, a 356-room hotel located in Washington’s CBD. The seller is Jamestown Properties, which acquired the hotel more than a year ago. Loews’ purchase is scheduled to close in January 2013.
Pricing was not disclosed but the last time the hotel traded hands it was for $123 million—a deal that included the connected 95,000-square-foot office building. At the time of the purchase from Bentall Kennedy, Jamestown said it planned to invest an additional $20 million into hotel. It did, and the renovation–which Loews CEO Paul Whetsell called “dramatic”–is expected to give the asset a strong competitive position in the DC market.
The hotel market seems to operate in fits and starts in the DC area and Mid-Atlantic region. After a dearth of transactions, several—including the Madison—are starting to close. Last week BRE Select Hotels Corp., an affiliate of Blackstone Real Estate Partners VII, swooped in and acquired the Richmond-based Apple REIT Six for $1.2 billion. The REIT has a portfolio of 66 hotels located in markets across 18 states, much of it focused around the Marriott and Hilton brands. The deal is indicative of private equity’s growing appetite for hospitality assets.
In Baltimore, the Modus Hotels, the collection of urban lifestyle hotels, announced it has acquired the 97-suite Brookshire Suites. It is Modus’ first hotel in downtown Baltimore and its third hotel acquisition of 2012. The company says it will invest several million dollars to renovate the property, a process that will begin in January 2013.