Tourist Hotels Attract New Investors

TRAVERSE CITY, MI—The hotel sector is now in the midst of its longest period of growth ever recorded, and that also means its awash in capital looking for new opportunities. Procaccianti Hotel REIT, Inc., has decided one of MI’s most popular tourist destinations has the strong economic fundamentals it needs. The Cranston, RI-based trust just acquired the Hotel Indigo located at 263 W. Grandview Pwy. in Traverse City, MI. TPG Hotels & Resorts, Inc. manages the property.

The 107-room, boutique style, select-service hotel opened in just two years ago and overlooks Lake Michigan’s West Grand Traverse Bay. Located in the city’s waterfront Warehouse District, the hotel features include underground valet parking, approximately 3,000 square feet of meeting space, a fitness center, business center, restaurant and a rooftop bar overlooking the bay.

“We believe that the Hotel Indigo Traverse City is an exceptional, new vintage property with multiple built-in demand drivers – its rooftop bar, extraordinary design features, and other amenities make this premium-branded, select-service hotel a strong addition to our portfolio,” says Gregory Vickowski, chief financial officer of Procaccianti.

CBRE’s Nate Sahn, James Johnson, Jack Johns and Anthony Leeds represented the owners, a partnership between JS Capitol and Hadidi Capital, in the sale.

Traverse City offers direct access to Sleeping Bear Dunes National Lakeshore, Lake Michigan and popular wineries. Midwest Living listed the city among its Five Top Food Towns, and Bon Appetit has listed it as one of America’s Top Five Foodie Towns. Developers have renovated many of the area’s historic buildings, which now house modern shops, art galleries, restaurants and craft breweries. The city also hosts several major events, including the National Cherry Festival and Traverse City Film Festival, founded by film director Michael Moore.