Holiday Inn West Bay sold

Region

Related Photos

ValStone Partners, LLC, has purchased the Holiday Inn West Bay, and will put up to $5 million in improvements. Record-Eagle/Jan-Michael Stump

September 13, 2012

Holiday Inn West Bay sold

New owners plan to invest millions in renovations

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com The Record Eagle Thu Sep 13, 2012, 07:14 AM EDT

TRAVERSE CITY — A new ownership group has taken over the city's only full service hotel on West Bay and intends to invest between $3 million and $5 million in renovations.

ValStone Partners, LLC purchased the Holiday Inn West Bay from Ohio-based TC Hotel LLC. A private equity investment firm located in downstate Birmingham, ValStone contracted with International Hotels & Resorts to manage the four-story, 179-room property.

Company officials cited Traverse City's growing reputation as a premier resort destination and its own ties to the region in its decision to purchase the "landmark" location.

"The property is irreplaceable in terms of its location and it's been really a staple in that market," said Brian McAlpine of ValStone. "It's a unique location, the best location in that market. A resort that can cater to everyone from the business traveler, tourists, and families on vacation with one of the best patios in the city that can be enjoyed by the local residents."

International Hotels manages almost 400 properties around the world, including four hotels in southeast Michigan. The hotel employs about 95 people and the new owners retained current General Manager Deborah Brown.

Brown said renovations will begin in November and finish before next summer. The hotel will not close during renovations.

The sale price was not disclosed, but the 5.5-acre property with 600 feet of private beach recently was assessed for tax purposes with a true cash value of $10.6 million, down from $14 million in 2011, county tax records show.

ValStone will become the fourth ownership group for a hotel built 44 years ago with a unique design that gives every guest room a view of the bay, said James Johnson of CBRE Hotels, which brokered the sale.

The property has 6,000 square feet of meeting space, two pools and four food and beverage outlets.

TC Hotel owned the property for about eight years.

"It's been a very profitable hotel forever, but financially it was just time for them to sell their asset," Johnson said.

Intercontinental Hotel Group, which owns the Holiday Inn brand, also requires a "fairly hefty renovation" for a property to remain in the Holiday Inn system, Johnson said. ValStone will renovate the rooms, common areas, meeting rooms, restaurants, and exterior, McAlpine said.

"The goal is not to do some minor changes, but to do some rather comprehensive and complete upgrades," he said.

Location on the water, full-service restaurants, and meeting space makes the Holiday Inn an important asset for Traverse City's tourism and convention business, said Brad Van Dommelen, director of the Traverse City Convention and Visitors Bureau. Its location next to the Hagerty Center provides conference planners additional flexibility that can attract meeting groups.

"It's always exciting when a new owner comes into town, especially when they want to make improvements," Van Dommelen said. "It's a great location, great property, and really an asset to the community."