Ohana Real Estate sells Montage Healdsburg for $ 265 million


Ohana Real Estate sold Montage Healdsburg to Sunstone Hotel Investors for $ 265 million. The newly constructed hotel is located in Sonoma County and has 130 guest rooms. The impressive price is equivalent to $ 2 million per room, setting a new standard for luxury hotel transactions in the United States, according to the seller.

This is the second time that Ohana has sold a hotel for $ 2 million per room. The premiere took place in 2019 when the investor sold the Montage Beverly Hills for $ 2.1 million per piece. At the time of the transaction, the price was the highest price per key in the country. In the case of the Montage Healdsburg, the price is particularly impressive given the dislocation of the hotel market caused by the global pandemic. James Cole, head of asset management at Ohana, says the deal illustrates the strong investor interest in quality hotels and the early stages of market recovery.

Despite the pandemic, Ohana remains optimistic about the hotel sector, believing that it benefits from an attractive supply-demand dynamic. During the pandemic he has been an active buyer of hotel products and intends to remain an active buyer this year. However, it is active in more than the hotel sector. As part of this transaction, Ohana retained ownership of the adjacent residential development sites and plans to develop custom residence sites affiliated with the property.

Although Ohana is bullish on the hospitality industry, struggling hotel assets continue to enter the market. Earlier this month, JLL’s loan and hospitality sales teams announced that they retained by a special CMBS managing agent to market the sale of an $ 80 million non-performing loan portfolio that includes six limited-service hotel guaranteed loans totaling 1,022 keys in five states. The portfolio includes two full service and four limited service hotels located in Lexington, Kentucky, Springfield, Virginia, King of Prussia, Pennsylvania, Indianapolis and Portage, Indiana, and West Coxsackie, New York. This is just one example. A recent study by Real Capital Analytics found that 8% of hotel sales since the start of the pandemic involved at least one struggling asset.

Montage Healdsburg is a sustainably designed property on 258 acres featuring multiple pools, a full-service spa, and multiple restaurants throughout the property. The hotel also has vineyards on site.

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