INLAND, KESSLER FORM $68.5M JV TO DEVELOP TWO HOTELS, ONE IN CHARLESTON, SOUTH CAROLINA
CHARLESTON, S.C., AND MOUNTAIN BROOK, ALA. — Inland American Lodging Group Inc. has formed two new joint ventures with The Kessler Enterprises Inc. to develop two luxury boutique hotels, totaling 150 rooms, in Charleston, S.C., and Mountain Brook, Ala. Both hotels, which are slated for an early 2015 completion, will be affiliated with Marriott’s Autograph Collection. The joint ventures represent a combined investment of $68.5 million.
“We are delighted to grow our relationship with Richard Kessler as we expand our investment in upper-upscale and luxury hotels through this mutually beneficial joint venture partnership,” says Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc. “The development of these assets further exemplifies our strategy of adding hotels to our portfolio that are well positioned to experience strong growth and capture outsized market share in high barrier-to-entry locations.”
The Grand Bohemian Hotel Charleston will mark The Kessler Collection’s first property in South Carolina. The 50-room hotel, which will be located in Charleston’s Historic District, will include more than 3,000 square feet of meeting and event space. The property will also feature a wine tasting room, fitness center, specialty coffee shop, along with a rooftop restaurant and terrace.
Located in Mountain Brook’s Lane Parke Village development, the 100-room Grand Bohemian Hotel Mountain Brook will include 100 rooms. The hotel will also feature an on-site art gallery, Poseidon Spa, interactive cooking school and 12,360 square feet of meeting space.
Under the joint venture agreements, Inland American will be the majority owner of the properties, while Kessler Enterprises will develop both hotels and retain a minority interest. Kessler Collection Management will manage the properties under a 15-year agreement.
Orlando, Fla.-based Inland American Lodging Advisor, a wholly owned subsidiary of Inland American Real Estate Trust Inc., focuses on acquiring and managing a portfolio of lodging properties. The company currently oversees 100 hotels with 19,438 rooms.
Kessler Enterprises, also based in Orlando, contains a collection of more than 10 boutique and luxury hotels, as well as residential properties. The company has properties in Florida, Georgia, North Carolina, Colorado and New Mexico.
— Brittany Biddy