Four Residence Inn hotels in Cleveland area change hands

H&LA’s David Sangree reflects on the improving hotel market in Northeast Ohio in Crain’s Cleveland Business

The purchase for more than $53 million of four Residence Inns in Northeast Ohio by affiliates of Atlanta-based Noble Investment Group LLC signals an upswing in the region’s lodging market.

So says David Sangree, president of the Hotel and Leisure Advisors consultancy in Lakewood.

“Portfolio sales do not happen every day,” Sangree said. “And you don’t see four better-quality hotels sell at one time here.”

The proof of Mr. Sangree’s sentiment is in the pricing.

Including a 96-unit Residence Inn in Mentor that sold Wednesday, Feb. 19, for $8.95 million, the four properties traded for a total of $53.45 million — a price that works out to almost $95,000 per room.

Sangree said the values are higher than hotels in the region have sold for in some time.

“This indicates the hotel market is performing better and the investment community is thinking more of the market. It’s exciting for the area,” Sangree said.

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