The Four Seasons Resort and Residences in Vail, a hotel that was at one time stalled in foreclosure proceedings, has sold for a record amount per unit.
Extell Development Co. bought the Four Seasons Resort and Residences in Vail for $121 million. With 134 rooms, the hotel sold for $903,000 per key. That’s a record hotel sales price for Colorado.
CBRE hotel sales broker Mark Darrington said the combination of the Four Seasons name and iconic Colorado ski town made the hotel attractive to several potential buyers.
“It’s a marquee destination and a marquee asset,” he said. “The combination of those two brands really spurred great interest from around the United States and around the globe.”
Barclays sold the hotel to Extell. They had owned the property since 2009, when Barclays took it over through a foreclosure proceeding while it was still under construction.
The acquisition is the first western hotel buy for Extell, whose website boasts about 1,600 rooms between high-end hotel properties in New York and Boston.
Darrington sold the property alongside fellow Denver-based broker Larry Kaplan and Bernard Van der Lande out of a New York CBRE office. He said they took the property out to market earlier this year and had interest from a wide range of potential buyers.
“We had a great marketing campaign followed by an aggressive sales approach – calling people, making face-to-face presentations and creating a competitive environment,” he said. “At the end, we had multiple interested parties that bid up the value in a competitive process.”
Vail’s Four Seasons has 121 hotel rooms and 13 two- to four-bedroom condominium units. The property also has a 15,000-square-foot spa, 7,000 square feet of meeting space, a bar and restaurant, and retail space.
The hotel is renting rooms from about $400 per night for this upcoming weekend, according to its website.
This sale makes at least two ski-town hotels to trade recently. Vail Resorts sold its Inn at Keystone in November for $6.4 million. The same group of CBRE brokers who sold the Four Seasons also sold the Vail Cascade Resort in December 2015 and the Holiday Inn Vail in January of this year.
Darrington said investors continue to keep a close eye on Colorado’s mountain towns.
“The appetite for quality assets in the high barrier-to-entry markets like these certainly pique investor interest,” he said. “The mountain towns are recognized for a scarcity of lands – it’s tough to find a site to develop, let alone come up with the entitlements to develop something.”