MINNEAPOLIS—Graves Hospitality has decided tosell its Graves 601 Hotel located in downtownMinneapolis to New York-based Loews Hotels &Resorts. Graves officials say the transaction will allowtheir nearly 40-year old development and management company toredeploy capital into higher growth assets of its portfolio andopen up reinvestment opportunities. Loews made an off-market,unsolicited offer so it could acquire a full-service Midwestproperty.
The price has not been disclosed, but BenGraves, chief operating officer, tells GlobeSt.com that"it's being sold at a top price; by far and away it's the marketleader." He compared it to Graves' 2012 sale of HotelWilliamsburg in Brooklyn. As reported in GlobeSt.com, that property, a boutiquehotel with 64 guestrooms, sold for $33 million, or about $520,000per room. The company will probably publicize the sales figure forthe 255-room 601 Hotel when the acquisition closes in July.
"This was definitely an opportunistic sale," he adds, "and verysimilar to the Hotel Williamsburg. In both cases, we really didn'thave plans to sell."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
