New Castle Hotels & Resorts acquires Holiday Inn Resort Jekyll Island

New Castle Hotels & Resorts acquired the Holiday Inn Resort Jekyll Island, a 158-room oceanfront resort, for $41 million subject to a land lease with the Jekyll Island Authority.

Previously owned by regional hotel investor Georgia Coast Holdings and its affiliated operator NorthPointe Hospitality, the hotel has a quarter-mile of beachfront land as part of its seven acres.

The total project cost, including planned improvements, is $48 million, or $304,000 per room. This transaction is consistent with the trend of lodging investment capital flowing to coastal drive-to resorts at valuations exceeding pre-pandemic highs.

Rich Lillis, executive managing director at Colliers, arranged the off-market transaction as agent to New Castle through Colliers’ direct sales process. “This important resort acquisition solidifies New Castle as Jekyll Island’s leading investor and operator,” Lillis said in a statement. “Our Colliers team initiated the dialogue, brought the parties together, and managed the transaction for a mutually beneficial outcome. The impressive valuation underscores the market trend of investor preference for drive-to coastal resorts.”

Located between Savannah and Jacksonville, Jekyll Island has more than 10 miles of beaches, four golf courses and an oceanfront convention center.