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WASHINGTON, DC-For the past several weeks, rumors have been circulating that commercial developer Robert Holland is in talks to buy the Watergate Hotel, along with a Dubai-based hotel owner, Jumeirah Group. The hotel returned to German-bank PB Capital earlier this year after owner Monument Realty defaulted on a $44.3 million loan.

Rumors of the Watergate’s impending sale are gaining currency with the announcement that CB Richard Ellis has been brought on to market the hotel on behalf of PB Capital. CBRE’s Marc Magazine–whose father served as the general contractor who built the hotel in the 1960s–Spencer Levy, John Isaacs, Lewis C. Miller and Doug Henkel are the brokers for the transaction.

CBRE plans to roll out a “targeted” marketing campaign for the property within the next four weeks. Its strategy is to emphasize the Wategate’s iconic name and luxury orientation, as well as a scarcity of hotel product in the District. As for Holland and any other ongoing negotiations, Magazine declined to comment other than to say there are potential purchasers negotiating to pre-empt the planned marketing campaign and try to get a contract signed beforehand.

“The property is worth at least the value of PB loans,” he tells GlobeSt.com, declining to discuss more specific pricing expectations due to client confidentiality. The Watergate will require substantial renovations, the amount depending on whether the new owner wants to deliver a four-star or five-star hotel, he adds.

Jumeirah recently signed an agreement to enter the German market for the first time, by locating a five-star, 219-room luxury hotel in Frankfurt’s new PalaisQuartier leisure and retail development.

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