An affiliate of Pacific Hospitality Group in Irvine bought the AC Hotel New Orleans from an affiliate of Dallas-based NewCrestImage LLC, according to the Orange County Business Journal.
It’s the first property for PHG outside of California.
Terms weren’t disclosed but industry sources said the price was about $60 million, which works out to $273,000 per room for the 220-room hotel.
News reports said Supreme Bright New Orleans LLC paid $17.8 million to buy the property in 2013, and put another $18 million into the renovation.
AC Hotels is a Marriott “lifestyle hotel” targeting millennial generation travelers, similar to national efforts—Curio, by Hilton, or Aloft, by Starwood—and the new Pendry Hotels division of Laguna Beach-based Montage Hotels & Resorts.
PHG Chief Executive Tim Busch said the acquisition complements a portfolio that includes five resorts and three hotels open or in development in California.
Chief Investment Officer Kory Kramer said the purchase “is our first of many acquisitions into the high-end select service space … to diversify into new growth markets.”
The New Orleans location is the first AC Hotel to open in the U.S. It’s in the city’s French Quarter in a 95-year-old building that originally housed a bank serving the cotton trade.