FelCor Lodging Trust has hired Jones Lang LaSalle Hotels to market the sales of the Embassy Suites Hotel—Cleveland Downtown and the Embassy Suites Hotel—Minneapolis Downtown. The 484-suite, two-property offering will be sold individually or as a portfolio. The hotels are available unencumbered by management. FelCor identified these hotels for sale in late 2003.
“The Embassy Suites Hotels in Cleveland and Minneapolis are both located in downtown, mixed-used developments near an assortment of demand generators,” said Thomas Fisher, Senior Vice President of Jones Lang LaSalle Hotels. “In the last year, we sold several Embassy Suites Hotels in other locations, and the Embassy Suites brand generated significant interest. The brand typically outperforms market competition, and investors are drawn to its consistent performance.”
The Embassy Suites Hotel—Cleveland Downtown is centrally located within the Reserve Square mixed-use development in the heart of downtown Cleveland. It was recently granted status as a Military Entry Processing Station hotel, which will generate an average of 300 to 400 room nights per month. The nearby Euclid Avenue Transportation Project will enhance the profile of the immediate neighborhood.
According to Arthur Buser, Managing Director of Jones Lang LaSalle Hotels, a new owner could recapture management fee income streams by introducing new management. “Investors could reposition both properties for enhanced profitability, taking advantage of the unparalleled window of opportunity in the current real estate market. Management availability also provides an opening to implement new yield management strategies, cost controls and marketing initiatives.”
The Embassy Suites Hotel—Minneapolis Downtown is located within the Centre Village mixed-use development and is connected by skywalk to major shopping and business districts within the downtown market. Centre Village combines parking, hotel, residential and office uses within the 26-story development. It is slated for a major renovation in 2004/2005, which will enhance curb appeal and the sense of arrival at the hotel.