Interstate has announced that it has acquired for $500,000, a 10.9 percent equity interest in The Statehouse Inn in downtown Boise, Idaho. Interstate purchased its ownership interest from Cameron S-Sixteen Hospitality LLC, a joint venture between Boise-based Cameron Investments, a real estate holding, development and private equity placement company, and S-Sixteen Limited Partnership. Interstate has managed the 112-room property since March 1.
“We have a long-term relationship with S-Sixteen, for whom we manage one other hotel in Boise,” said Thomas F. Hewitt, chief executive officer. “Our acquisition of an equity interest is part of our previously announced strategy to diversify our earnings base through hotel ownership, either wholly owned, in joint ventures or as a sliver investment. It also reflects our confidence in our joint venture partners and the long-term potential of this property.
“This is a well-located hotel with a great reputation, in a strong, secondary market, with easy access to the convention center, the state capital, and the city’s key demand generators,” he added. “An extensive, $3 million renovation is planned that will reposition the hotel and restaurant as an urban boutique hospitality property. Downtown Boise has been undergoing a renaissance, and this renovation will allow us to take full advantage of the increased activity.”
Rick Clark, principal of Cameron Investments, noted that The Statehouse Inn is an attractive addition to Cameron’s real estate holdings, now valued in excess of $100 million. “This is Cameron’s first entry in the hospitality market and the joint venture’s third acquisition in the Treasure Valley. With Interstate as manager, we gain a number of advantages, including their size and attendant economies of scale and operating synergies, as well their previous management experience in the Boise market.”
Located at 981 Grove St., in downtown Boise and featuring panoramic views of the city and the Boise Valley, the hotel is conveniently located near Boise’s major attractions, including the convention center, the capitol building and BoDo, downtown Boise’s new entertainment district. The former Eighth Street Marketplace includes a nine-screen movie theater, restaurants, a hotel, offices and retail stores. Located in the heart of the cultural district south of Front Street, this private development also includes warehouses converted into shops, offices, performance spaces and restaurants.