Fort Smith-based CSK Hotels Inc. Sells Four Properties for $30 Million

Fort Smith holding company CSK Hotels Inc. is under contract to sell four of its hotels for $30 million and should close on the deal next week with New York-based real estate investment firm The Lightstone Group.

The four properties in the purchase are Aloft in Rogers, Towne Place Suites by Marriott in Springdale, Towne Place Suites by Marriott in Little Rock and Fairfield Inn and Suites in Jonesboro.

“We’ll renovate all of them, but only lightly because the owner did an excellent job of maintaining the buildings,” said Guy Crawford, vice president at Lightstone. “We feel like there’s stable and expanding demand, and we like the proximity to Wal-Mart and all that.”

Lightstone’s portfolio includes retail, multifamily, industrial and office space throughout the United States. The purchase represents Lightstone’s first foray into Northwest Arkansas, Crawford said.

The hotels went on the market in 2010, but the time wasn’t right until recently, said Storm Nolan, a partner at CSK.

“The economy got better and this was the opportunity to sell,” he said.

Nolan was adamant that the deal with Lightstone does not represent CSK’s eventual exit from the hospitality industry.

“We’ll still have six hotels,” he said. “We will definitely continue to be in the hotel business.”

While negotiations weren’t bitter, buying the hotels wasn’t necessarily easy, said Ron Danko, executive vice president at CB Richard Ellis Hotels, the agency that brokered the deal.

“They were very firm on their pricing,” said Danko, speaking of CSK’s stance.

Referring to the fact that the properties first went up for sale back in 2010, Danko sounded relieved when he said, “It’s finally coming to an end.”

Aloft, a 130-room property, had a room revenue of $2.98 million in 2011, according to the Northwest Arkansas Business Journal list of Largest Hotels published in July. That ranked No. 4 among area hotels trailing Embassy Suites Northwest Arkansas in Rogers, Holiday Inn Northwest Arkansas in Springdale and DoubleTree Suites by Hilton in Springdale.

TownePlace Suites by Marriott, just off the Johnson exit, had a room revenue of $1.37 million in 2011.