Wheelock Street Capital has acquired The Cavalier Resort in Virginia Beach, Va., in partnership with HEI Hotels & Resorts. CBRE’s Hotel Investment Sales team represented the seller, Gold Key and CBRE’s Debt & Structured Finance team arranged acquisition financing.
The Cavalier Resort comprises three properties on more than 15 acres of beachfront at the northern end of the Virginia Beach Boardwalk: The Cavalier Hotel and Beach Club, Autograph Collection, an 85-room property built in 1927 and renovated in 2018; the 305-room Marriott Virginia Beach Oceanfront Resort, which opened in 2020; and the 157-room Embassy Suites Virginia Beach Oceanfront Resort, which opened in 2023. Combined amenities include nine restaurants, a beach club, six pools and a full-service spa.
The resort was developed by Bruce Thompson, CEO of Gold Key, beginning with an $85 million restoration of the Historic Cavalier, followed by ground-up development of the Marriott and Embassy Suites properties.
“While numerous parties have approached us about acquiring the Cavalier Resort, Wheelock Street Capital was the first with a demonstrated track record of financial acumen and asset stewardship to preserve and enhance these assets,” said Thompson. “We have confidence that Wheelock will continue this performance at the Cavalier. Gold Key/PHR will continue to build upon our 40-year history for creating and developing iconic hospitality and real estate assets in the Mid-Atlantic region.”
“The opportunity to invest in irreplaceable real estate in one of the fastest-growing and most dynamic resort markets in the United States is something that we are excited to close on,” said Tim Hodes, managing director and head of Hotel Investments at Wheelock. “We look forward to becoming part of the Virginia Beach community and continuing to steward and build upon the outstanding resort that Gold Key developed.”
“We welcome this opportunity to invest alongside our partners at Wheelock in these remarkable properties,” said Clark Hanrattie, partner of HEI Hotels & Resorts. “The resort has established an extraordinary reputation for providing an outstanding guest experience through high-quality facilities, excellent food and beverage and signature events. As property manager, HEI will ensure that The Cavalier Resort remains one of the best resorts in the Mid-Atlantic.”