Graves Hospitality (GH) announced the sale of the Graves 601 Hotel located in downtown Minneapolis. The transaction is a strategic move by the nearly 40-year old development and management company, allowing for a redeployment of capital into higher growth assets of its vast portfolio and opening up lucrative reinvestment opportunities. The sale results from an off-market, unsolicited offer by Loews Hotels & Resorts, a national chain that desired a signature, full-service Midwest property. The acquisition is expected to close in July of 2014.
“We’ve always maintained a clear eye on the future and an unwavering commitment to creating returns for our investors,” explained Jim Graves, founder of Graves Hospitality. “Frankly, this sale creates revenue for new development, management and investment opportunities that result in an even higher rate of return. Accepting their offer was simply good business,” Graves continued.
The upcoming transition of the Graves 601 Hotel echoes Graves Hospitality’s four decades of success developing, managing, and often selling, more than 100 hotels and restaurants, as well as residential and commercial properties. Graves Hospitality’s current portfolio includes ownership and management of hotel brands such as Hilton, Radisson, IHG and Marriott as well as 10 award-winning restaurants. Development is currently underway on multiple projects from Seattle to New York. In the past year, it has taken over the management of two properties in St. Paul, accounting for almost half of the hotel rooms in downtown and is rebranding one of the hotels as Minnesota’s first InterContinental luxury hotel. The company is also on track to open six more restaurants in the 2014 calendar year, including Rival House in downtown St. Paul, opening this month.
“This sale, like the 2012 sale of our Hotel Williamsburg in Brooklyn, sets a high watermark for value. We’re incredibly proud of our ability to adeptly capture markets with relevant and exciting projects. Repeatedly, strategic reinvestment has proven to be a keystone of our company’s success,” stated Benjamin Graves, principal of Graves Hospitality.
Loews Hotels & Resorts seeks out distinctive properties that offer business, leisure, and family travelers the ultimate in upscale experiences across the U.S. and Canada. “Loews is known for their excellent level of service, and they are diligent about each hotel reflecting its unique location. The Graves 601 will be no exception,” explained Jim Graves. “We still own and manage a Marriott Residence Inn, which is one of our downtown holdings just a few blocks away. We’re as committed to Minneapolis as ever, and we feel absolutely confident that passing the baton to Loews will ensure the hotel continues to be an asset for Minnesota,” Graves continued.
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