Springdale Company Sells Two NWA Hotels For $13.9 Million
by August 9, 2016 3:45 pm 964 views
Hotel management and development company Krushiker Hospitality Group Inc. of Springdale has sold two of its Northwest Arkansas properties for a combined $13.9 million.
Hotel investment company Woodmont Lodging of Maryland partnered with Waramaug LS Hotels, a private investment group based in Florida, to buy the Holiday Inn Express & Suites at 2205 S.E. Walton Blvd. in Bentonville (84 rooms) for $6.87 million, and the Fairfield Inn & Suites at 1043 Rieff St. in Springdale (74 rooms) for $7.06 million.
Both deals closed in late July, and the purchase price equals $88,251 per room.
Benefit Street Partners CRE Finance LLC provided financing with a 10-year loan of $11.1 million.
Craig Nussbaum, a senior vice president at Waramaug, noted Northwest Arkansas’ strong business travel segment tied to both Wal-Mart Stores Inc., and Tyson Foods Inc. as key factors that made the two hotels attractive acquisition targets.
“That speaks highly of the demand driving traffic to those new hotels and the strength in each market,” he said. “Both markets also have a strong job creation forecast and consistent economic growth, coupled with a limited new supply outlook.”
Elliott Estes, who co-founded Woodmont Lodging in 2015, said the new owners will begin a renovation of the Holiday Inn. The four-story hotel was built in 1997 and offers 943 SF of meeting space, a fitness center and a business center.
Estes said the renovation will bring the property up to date with the Holiday Inn Express “Formula Blue” design plan, which will revamp the exterior and guest rooms. A renovation to the building’s lobby was recently completed.
The project is expected to be complete in the first quarter of 2017.
Fairfield Inn recently underwent a full renovation, and features a 150 SF meeting room that can accommodate up to 12 persons. New 32-inch, LCD televisions are now in every room, and the property also includes a fitness center, indoor swimming pool and whirlpool.
Both hotels are managed by Interstate Hotels and Resorts of Virginia.
The acquisition is the second major hotel deal this year involving multiple properties in Northwest Arkansas. In April, Little Rock investors combined to spend $48 million on the acquisition of four hotels in Northwest Arkansas — three in Bentonville and one in Fayetteville.
KHG, owned by Narendra “Narry” Krushiker, operates eight hotels in Northwest Arkansas and Fort Smith.
In October 2014, it opened the $12 million Hilton Garden Inn & Conference Center, a 115-room facility located at the southbound Wedington Road exit off Interstate 49 in Fayetteville.’
Earlier this year, KHG purchased about five acres of land along South 48th Street in Springdale for $1.17 million. At the time, a spokesperson for KHG said “major decisions” still have to be made regarding the property and development plans were not finalized.
Krushiker was not immediately available for comment.