Graves 601 Hotel Sold to Loews

MINNEAPOLIS—Graves Hospitality has decided to sell its Graves 601 Hotel located in downtown Minneapolis to New York-based Loews Hotels & Resorts. Graves officials say the transaction will allow their nearly 40-year old development and management company to redeploy capital into higher growth assets of its portfolio and open up reinvestment opportunities. Loews made an off-market, unsolicited offer so it could acquire a full-service Midwest property.

The price has not been disclosed, but Ben Graves, chief operating officer, tells GlobeSt.com that “it’s being sold at a top price; by far and away it’s the market leader.” He compared it to Graves’ 2012 sale of Hotel Williamsburg in Brooklyn. As reported in GlobeSt.com, that property, a boutique hotel with 64 guestrooms, sold for $33 million, or about $520,000 per room. The company will probably publicize the sales figure for the 255-room 601 Hotel when the acquisition closes in July.