Palisades Hospitality Group, which operates more than 30 resort, hotel and restaurant properties across leisure destinations in California, Hawaii and Mexico, and CovoCapital, a real estate investment company based in San Francisco, have jointly purchased the Colony Palms Hotel, in Palm Springs, Calif.
The purchase price was not disclosed.
PHG will operate the Colony Palms under its hotel subsidiary, which includes the El Dorado Hotel & Kitchen in Sonoma, Calif., and the North Block Hotel in Yountville, Calif.
Over the next several months, PHG will also undertake upgrades and enhancements to the 57-room property’s spa, guest rooms, restaurant and landscaping. In addition, the hotel will add 1,200 square feet in meeting space under the new management, perfect for small groups and events accommodating up to 50 people.
“The Colony Palms is a gorgeous, historically significant property in a fantastic location that offered us a perfect fit with our larger mission at Palisades Hospitality Group – to expand our boutique hotel presence in leisure destinations with truly special, individual properties that fit the way people want to travel,” said Tim Harmon, Chief Executive Officer of Palisades Hospitality Group.
Originally built in 1936, the Colony Palms property was once owned by alleged mobster Al Westheimer and featured a casino, speakeasy and brothel that attracted such famous Hollywood guests as Clark Gable, Carole Lombard and Humphrey Bogart. Later in the 1940s, the hotel was purchased by the owners of famed racehorse, Sea Biscuit, Robert and Amanda Leeds-Howard, and was renamed the “Howard Manor.” In the 1970s, the property changed hands again and was reinvented as a popular health resort called “The Palms.” Most recently, in 2008, the hotel underwent a substantial $17 million renovation at the hands of interior designer Martyn Bullard-Lawrence.
CovoCapital is a boutique real estate investment company based in San Francisco that is currently focused on the acquisition of high quality branded and independent hotels in the United States. The company’s principals have more than 100-years of combined commercial real estate investment, management and finance experience and have managed $20 billion of commercial real estate investments, including: hotels, for sale and for rent residential properties, industrial properties, office properties, and retail properties throughout the U.S. and Asia.