Hotel development, management and investment firm Midas Hospitality plans to co-develop a $25 million, 107-room Residence Inn in Lancaster, Calif., with Los Angeles-based InSite Development. Midas Hospitality plans on breaking ground on the hotel in late 2019 and opening it in early 2021. It will manage the property once built.
The company recently unveiled an Opportunity Zone fund seeking to raise $12 million for the new hotel, its first on the West Coast. The development marks the company’s second foray into using Opportunity Zone funds. Its first, which raised $35 million and closed in February this year, funded two hotel developments in St. Louis.
“We’re excited to bring our approach of people, properties and informed investments to the West Coast,” J.T. Norville, Midas Hospitality’s co-founder/managing partner, said in a statement. “We’re eager to bring together a wide variety of investors to generate meaningful returns and significant tax benefits afforded by the Opportunity Zone legislation for the second time.”
Lancaster is home to several aerospace companies, including The Boeing Company, Lockheed Martin and Northrup Grumman Corp. It is on the northern edge of Los Angeles County in the heart of the Antelope Valley.
Midas Hospitality, founded in 2006 and based in Maryland Heights, Mo., owns and manages 38 hotels, with eight more to follow in the near future. The firm’s portfolio consists largely of select-service and extended-stay properties from Hilton, Marriott and IHG.