Inland Pays $69M for Fairmont Dallas
- Aug 05, 2011
The historic Fairmont Hotel in Dallas traded hands this week for the reported amount of $69 million, or $127,000 per key. According to city records, the seller was PCCP DCP Dallas Hotel, an affiliate of El Segundo, Calif.-based Pacific Coast Capital.
The Fairmont opened in 1969 as the first luxury hotel in Dallas and consists of 545 guest rooms in two towers and 70,000 square feet of meeting space.The 24-story, two-tower property is located at 1717 N. Akard St., within walking distance of the central business district and Financial District and less than one mile from Victory Park and the West End.
Buyer Inland American Lodging Group Inc., a wholly owned subsidiary of Inland American Real Estate Trust Inc., is taking title to a hotel that offers exclusivist accommodations, which underwent approximately $50 million in capital improvements since 1997, including $14.9 million ($27,300 per key) during the past four years.
“This unique asset represents a significant acquisition for Inland American at an attractive price per room,” said Marcel Verbaas, president & CEO of Inland American Lodging Advisors Inc. “The acquisition of this hotel will contribute to the ongoing enhancement of the overall quality of our portfolio and further diversifies our portfolio by customer and asset mix. This transaction also extends our commitment to furthering the success of downtown Dallas and the Arts District.” Inland American plans on investing additional capital in improvements to maintain and improve the hotel’s luxury status.
This is the second significant acquisition for Inland American Lodging Group, following its October purchase of the 407-room Dallas Marriott City Center, currently under renovation and slated for re-opening by the end of the year.