Alchemy Real Estate Advisors sold the Cambria Hotel East Madison, a 121-key upscale hotel in Madison, Wis. Alchemy represented the private seller exclusively in the transaction. The buyer was a private hotel owner/operator with an existing presence in Wisconsin. Other terms and conditions were not disclosed.
The hotel benefits from direct access to Interstates 90/94/39 and U.S. Highway 151 and is located within The American Center, a 447-acre Class A business park on Madison’s east side. The property is near a diverse base of corporate, medical, educational, airport, and leisure demand generators, including American Family Insurance, UW Health East Madison Hospital, UW Health Eastpark Medical Center, Dane County Regional Airport, the University of Wisconsin–Madison, the Alliant Energy Center and Camp Randall Stadium.
The Cambria Hotel East Madison was offered unencumbered by debt and management, creating an opportunity for investors to acquire a modern upscale hotel at a meaningful discount to replacement cost. The property also presented an opportunity to relicense under the Cambria by Choice Hotels brand.
The sale also represented a strategic exit for the seller, who relied on third-party management for day-to-day operations. The buyer intends to self-manage the hotel, with the opportunity to unlock value through more direct oversight of operations, revenue management, expense controls, and guest experience.
“This transaction reflects the liquidity that still exists for well-located, branded hotel assets when the process is disciplined, and the buyer is properly qualified,” Adam Montufar, principal and founder of Alchemy Real Estate Advisors, said in a statement. “Certainty of execution matters in a more selective transaction environment. The buyer performed, posted hard money, and closed early, which allowed our client to achieve a clean and efficient exit.”