It's been a heckuva few months for the Inland American Lodging Group, the wholly owned subsidiary of Inland American Real Estate Trust. Yesterday the group announced it formed two new joint venture agreements with Kessler Enterprises for a combined $68.5-million investment to develop two luxury boutique hotels in Charleston, S.C., and Mountain Brook, Ala. Both will affiliate with Marriott International's Autograph Collection.
In November the lodging group acquired the Hotel Monaco Chicago (shown at right), the Hotel Monaco Denver and the Hotel Monaco Salt Lake City from Kimpton for $189M. That transaction brought the company's acquisitions in 2013 to 13. In October Inland acquired the 285-room Loews New Orleans for $74.5M, and in September it picked up two Andaz hotels for approximately $115 million, just to detail a few transactions.
This latest joint venture will bring new luxury offerings to Charleston and the Birmingham suburb of Mountain Brook, Ala. Under the joint venture agreements, Inland American will be the majority owner of the properties and Kessler Enterprises will develop both properties. The properties will be managed by Kessler Collection Management under a 15-year management agreement.
“Despite the significant demand and the desire of travelers for modern comforts and amenities, both Birmingham and Charleston have not experienced a new luxury hotel in their markets for more than a decade," said Marcel Verbaas, president and CEO of Inland American Lodging Advisor.
The Grand Bohemian Hotel Mountain Brook is planned to open in early 2015 in Mountain Brook's Lane Parke Village development. The 100-room hotel will have an art gallery, spa, cooking school, rooftop terrace and restaurant, and 12,630 square feet of meeting space.
Charleston's Grand Bohemian Hotel Charleston, also set for an early 2015 opening, will have 50 rooms in Charleston's Historic District.