The Unified Government of Kansas City, Mo., and Wyandotte County unloaded a downtown hotel to pay back outstanding debt.
The 147-room Hilton Garden Inn in downtown Kansas City was sold to Fairwood Capital, a real estate firm based in Memphis, Tenn., for $8.8 million.
The sale was organized to cover outstanding debt obligations held by city government and create a base for $2 million in planned renovations to the Reardon Convention Center, which is attached to the hotel. The Unified Government continues to own the Reardon Convention Center.
In addition, the Unified Government signed a five-year management agreement with Brancato Catering to manage the Reardon Convention center, providing exclusive booking, event and catering services.
Before the sale, the Unified Government owned a 49.5 percent stake in the hotel, with the remainder held by KCK Investors (49.5 percent) and Landmark Hotel Co. (0.1 percent). The hotel was constructed in 2002 and completed a $2-million renovation in 2013.