HOUSTON – (Realty News Report) – A controlling interest in the Magnolia Hotels brand, which includes a historic hotel in downtown Houston, has been acquired by CoralTree Hospitality.
CoralTree Hospitality, in partnership with its parent company Lowe, it has acquired a controlling interest in the Magnolia Hotels brand from Denver-based Stout Street Hospitality. CoralTree will manage four of Magnolia’s six hotels in Denver, Houston, St. Louis and Omaha while licensing the name to the New Orleans and Dallas hotels.
The Magnolia brand is known for independent hotels, some in buildings on the National Register of Historic Places, that attract both business and leisure travelers. With the addition of the six new Magnolia Hotels, CoralTree has a portfolio of 22 hotels and resorts throughout the United States.
In Houston, the 314-room Magnolia Hotel Houston opened in 2003 in the former Post Dispatch building, which was home to a newspaper many years ago before its redevelopment into a hotel. Built in 1926, the hotel is listed on the National Register of Historic Places. The hotel, located at 1100 Texas Avenue, is across the street from Christ Church Cathedral, established in 1839 and one of the oldest churches in Texas.
The Magnolia brand’s first property, Magnolia Hotel Denver, is located in what was formerly the American National Bank Building and is listed on the National Register of Historic Places. The 297-room property was restored to reflect its original appearance with terra cotta details and a replicated corner clock adorns this 13-story landmark edifice built in 1910. The hotel opened in 1995.
The 145-room Magnolia Hotel Omaha is located in the heart of downtown Omaha. It is ideally situated next to the area’s finest attractions including the Qwest Center, the historic Old Market, and the Orpheum Theatre. It was named to the National Register of Historic Places in 1974.
In downtown St. Louis, the 182-room Magnolia Hotel is within walking distance of the America’s Center Convention Complex. Originally opened as the Mayfair Hotel in 1925, the St. Louis hotel was listed on the National Register of Historic Places in 1979.
With the addition of the six new Magnolia Hotels, CoralTree has a portfolio of 22 hotels and resorts throughout the United States.
“Magnolia Hotels is a great complement to our mission at CoralTree to work with distinctive, independently-minded properties,” said Tom Luersen, president of CoralTree Hospitality. We look forward to expanding the brand, when appropriate, to other metropolitan markets.”
Developing hotels since 1993, Stout Street Hospitality is a fourth-generation family business. The Denver-based company has focused on revitalizing urban core, historically significant properties into unique independent hotels, under the Magnolia Hotels brand. Going forward Stout Street Hospitality will continue to own and develop new Magnolia Hotels as well as pursue a wide range of asset management, management, acquisition and development opportunities. The company currently owns and asset manages Magnolia hotels in Denver, Houston, Omaha, St. Louis, and New Orleans.
“For more than four decades, my family has owned and managed hotels throughout the United States including the Magnolia brand which launched in 1995 with the opening of our Denver hotel,” said Sarah Holtze Treadway, president and co-chief executive officer of Stout Street Hospitality. “It’s been a labor of love for all of us to see the brand expand into new destinations over the years. We are confident in CoralTree’s stewardship of the brand as they usher it into its next chapter and look forward to our partnership and pursuing new opportunities together.” Stout Street Hospitality will continue to asset manage its current portfolio as well as develop and manage future opportunities.
The Covid pandemic has pressured the hotel industry.
Last month, Downtown Houston’s 223-room Hotel Alessandra, which closed down in January amid a tough Covid business environment, was acquired by Host Hotels and Resorts for $65 million.The 20-story Hotel Alessandra, 1070 Dallas Street, developed by Houston-based Midway opened in 2017. “We opportunistically acquired this 223-room hotel for $65 million or $291,000 per room on July 2, prior to a scheduled foreclosure auction,” said Host Hotels CEO Jim Risoleo in a conference call with industry analysts. The hotel has not yet reopened.
Sept. 12, 2021 Realty News Report Copyright 2021
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File: Sold: Magnolia Hotels Brand. CoralTree Hospitality.