By Kate Snyder
Transactions are continuing to be recorded in Sacramento. One recent deal involved the sale of the La Quinta Inn by Wyndham Sacramento Downtown for $15.8 million, or approximately $93,750 per room, according to public records. The seller was an entity affiliated with Highgate, a hospitality management and investment firm, and the buyer was an entity affiliated with Heritage Hotel Group, based in Roseville.
The 168-unit hotel is located at 200 Jibboom St. According to the property’s website, amenities include indoor and outdoor pools, a hot tub, free WiFi, an on-site business center and meeting space. The inn is located off I-5 and nearby attractions include the Old Sacramento Historic District, the Sacramento Zoo, the Sacramento International Airport as well as numerous parks, museums and historic sites.
In operation for more than 30 years, Highgate has offices across the country as well as in London, according to the firm’s website. It is currently executing or planning $1.2 billion of capital projects involving hospitality development.
“With an already significant portfolio of hotels in the US, the Caribbean and Latin America, and Europe, our broad footprint keeps us innovating,” the firm’s website states.
In separate transactions, Highgate has been involved in selling interest in multiple hotel properties, according to a recent announcement.. Earlier this month, a joint venture of Flynn Properties Inc. and Värde Partners announced the acquisition of 80 percent interest in 89 select service and extended stay hotels in a $1.1 billion implied total enterprise value transaction from affiliates of Highgate and Cerberus Capital Management, L.P.
With properties located throughout the United States, the portfolio involved in that deal comprises 58 Marriott-branded hotels, 24 Hilton-branded hotels, four Radisson-branded hotels, two IHG-branded hotels and one Choice-branded hotel, which will undergo capital improvements over time. Affiliates of Highgate and Cerberus will retain a 20 percent interest in the investment, and Highgate will continue to manage the properties on behalf of the joint venture.