Affiliates of Northview Hotel Group, in partnership with a fund managed by an affiliate ofApollo Global Management, LLC (NYSE:APO) have announced the acquisition of Hotel Madeline Telluride, Telluride's premier hotel and residences.
Terms of the transaction have not been disclosed. A Virtuoso-preferred destination and member of The Leading Hotels of The World, Hotel Madeline Telluride is a four-diamond rated, ski-in ski-out property in the heart of the Town of Mountain Village in Telluride, featuring 89 guest rooms, 11 suites, 60 residences, 10 employee condominium residences, two restaurants, 4,000 square feet of meeting space, 15,705 square feet of retail space, and multiple world-class amenities including The Spa at Hotel Madeline.
The acquisition of Hotel Madeline Telluride marks the Partnership's fourth joint venture in the past 18 months. Northview will operate the hotel on behalf of the Partnership, as well as oversee multiple, proposed capital improvements projects and the sale of the residences. Northview was pre-approved by the Mountain Village Town Council to manage the Property in July of this year.
"I am very supportive of this operator and appreciate that the Partnership will invest in improvements and additional amenities, as well as help grow our bed base by releasing the residences for sale," said Mountain Village Mayor Dan Jansen during the Town Council meeting in July. "Hotel Madeline Telluride is known as one of Telluride's premier properties, and I am hopeful that Northview will continue to maximize its potential. I am looking forward to seeing more detail on the improvement plans and working with Town Council to make it happen."
Northview specializes in the management of full-service, upscale resort properties in seasonal markets, including Brasada Ranch in Bend, Oregon, Sanderling Resort in the Outer Banks, North Carolina, Beach House on Hilton Head Island, South Carolina, and Hawks Cay Resort in The Florida Keys (a Northview property from 2007-2013). Northview leverages its proprietary set of management tools, systems, and unique processes to maximize peak season revenue, build shoulder season demand, and minimize off-season losses, while maintaining best-in-class guest and associate satisfaction.
"Hotel Madeline Telluride is one of the finest hotels in Colorado ski-county, and, we are delighted that it will join our growing collection of hotels and resorts," said Mark Mance, Northview's founding partner. "The on-property team has done a tremendous job re-establishing the hotel's premier position in Telluride over the past year and delivering memorable experiences to its guests. We look forward to building on this success."
The Partnership's goal is to establish the hotel as the premier property in Telluride, and one of the top mountain properties in the U.S. To that end, the Partnership plans to invest $7-10mm in the short term, to (i) upgrade the Property common areas, (ii) re-concept the Property and residence amenities, including The Spa and pool area, and (iii) complete significant improvements to the residences. Limited disruption to the Hotel operation is expected while this work is carried out. The upgraded condominium residences will be released for sale as early as the 2014/15 winter season.
"We have a lot of work to do to fully immerse ourselves in the Town of Telluride and Mountain Village, on-board the Hotel team, build the right strategies and success measures for this tremendous property, and launch the residences for sale," said Brent McLean, Northview's Senior Vice President. "We will seek considerable input from community members and the existing Hotel team to meet our primary goal of ensuring the Property is a considerable source of pride for everyone involved."
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