Midwest Hospitality Group, also known as MHG Hotels, snagged a Marriott-branded hotel in West Palm Beach for $20.5 million, netting the seller a $5.2 million gain six months after purchasing the 2.5-acre property.
An affiliate of Indianapolis-based MHG acquired Courtyard by Marriott – West Palm Beach Airport at 1800 Centrepark Drive East, records and Vizzda show. Midwest Hospitality partially funded its 103-room hotel purchase with a $17.5 million mortgage from Abanca USA.
The deal breaks down to roughly $199,000 per key.
The seller, an affiliate of Lewis City, Ohio-based Regal Hospitality, paid $15.2 million for the property in June, records show. The 62,628-square-foot hotel was completed in 2001.
Led by CEO Sanjay Patel, MHG is a family run hotel real estate investment and development firm that owns six hotels in Indiana, Kentucky and Texas. The firm is also developing the proposed Hollywood Courtyard by Marriott. MHG plans to demolish two single-story office buildings in downtown Hollywood and build the 13-story, 112-key hotel.
MHG is also planning a Homewood Suites by Hilton hotel in Pompano Beach, according to published reports.
Hotel trades in South Florida are heating up. Recently, Thrive Hospitality Group and Mid America Lodging Group, two Michigan-based firms led by members of the Abdulnoor family, paid $14.5 million for a La Quinta Inn in Plantation.
Last month, Winter Park, Florida-based Holidays Network Group acquired a Miami Beach redevelopment site approved for a 107-room hotel for $27 million. In the same city, a joint venture between Delray Beach-based Kolter Group’s hospitality arm and Aventura-based BH Group paid $24 million for Crystal Beach Suites Miami Oceanfront Hotel, an 84-room property.
In October, Albanian conglomerate Kastrati Group dropped $53.5 million for the SLS Brickell Hotel. Constellation Hospitality, a firm led by members of Qatar’s ruling royal family, the Al Thanis, sold the 124-key hotel in Miami’s Brickell neighborhood.