Hilton Garden Inn Trades for $60M

ARLINGTON, VA-The Hilton Garden Inn Courthouse closed on Friday, trading for $60 million, or $320,000 per key. The local seller, recorded as Courthouse Hotel Properties LLC, sold the 189-key property to a national company, CP-IPERS Arlington Hotel LLC. Humboldt Hospitality Advisors’ principal Marc Magazine, formerly of CB Richard Ellis and CBRE’s Doug Henkel brokered the sale.

At $320,000 per key, the deal closed at the price point at which most hotel trades have been occurring, Magazine tells GlobeSt.com.  “It shows the continuing strength of the hospitality market inside the Beltway.“ The buyer also wins, he says, in that it gets a property that is increasing in performance every year. The transaction took more than a year to close because the loan was part of a CMBS and it took this amount of time for the servicer to assume the loan.

Between $300,000 to $320,000 to $375,000 per key appears to be the sweet spot for hotel trades these days in the DC area. Hersha Hospitality Trust acquired the Capitol Hill Suites for $312,000 per key, Hampton Inn on 6th Street and Massachusetts Ave. in the District sold for $325,000 per key and the Hotel Monaco traded for $400,000 per unit, to name just a few examples.