MILWAUKEE, WISCONSIN At least three of the 10 CoCo Key Water Resorts-affiliated hotels that were placed into an online auction have been sold.
The ownership group, led by Wave Development and Hexagon Investments, both of Milwaukee, offered the Sage Hospitality Resources-managed properties on Auction.com last week. The reserve price was met in at least three cases.
Bidding for the 200-key Cherry Valley Lodge and CoCo Key Water Resort in Newark, Ohio, started at US$2.9 million and ended with a US$4.97 million winning bid, Denver Business Journal reports. The identity of the buyer may not emerge until the deal closes next month.
“That’s a hell of a deal at $24,500 a room,” Eric Belfrage, a hotel marketing specialist at the CB Richard Ellis, tells the newspaper. Wave Development had valued the property at US$36 million last fall.
Two other Ohio hotels also went for bargain prices in the auction. The adjacent Fairfield Inn Cincinnati North and Crowne Plaza Cincinnati North properties, which share a CoCo Key waterpark, received winning bids of US$1.8 million and US$2.2 million, respectively.
The results of the auctions for the other hotels have not been disclosed publicly.
All 10 hotels were auctioned free and clear of the existing management agreements. The other seven properties placed up for auction were:
- Marriott Mt. Laurel and CoCo Key Water Resort, New Jersey (starting bid price US$4.9 million)
- Crowne Plaza Boston North Shore and CoCo Key Water Resort (US$6.9 million)
- CoCo Key Water Resort Waterbury, Connecticut (US$1.5 million)
- Courtyard Fitchburg and CoCo Key Water Resort, Massachusetts (US$2.7 million)
- Best Western Clock Tower Resort Rockford, Illinois (US$2.9 million)
- CoCo Key Omaha Convention Center, Nebraska (US$1.9 million)
- Holiday Inn Kansas City Southeast, Missouri (US$1.9 million)