Sold: Deal reached for Marriott Griffin Gate. What comes next?
A deal has been reached to sell the Griffin Gate Marriott, Lexington’s largest hotel.
Hotel general manager Craig Sundell said on Monday that the property has been for sale for some time but that about 10 days ago a deal came together to sell the hotel, possibly packaged with other properties owned by Xenia Hotels and Resorts. Xenia did not respond to requests for comment.
Sundell said he could not disclose the potential buyer or price.
The property has a fair cash value of more than $54 million, according to the Fayette County PVA’s office. Xenia disputes that evaluation and has appealed. They have declared a value of $40.5 million for tax purposes.
The deal is expected to close Dec. 16, Sundell said. He said the potential new owners are expected to announce a multimillion renovation.
“The new ownership group is already throwing numbers out in the $30 million to $35 million range,” Sundell said. “The exciting part of it is it is going to remain a Marriott.”
The hotel was built in 1981 and has a golf course, which Sundell said will remain. The property also is a resort and a restaurant, The Mansion.
Xenia, then known as Inland American real estate trust, purchased the Griffin Gate property as well as two other hotels in 2011 for $262.5 million from DiamondRock Hospitality. The property transfer listed the sale price for the Griffin Gate hotel as $62.5 million.
The golf course parcel is valued at $2 million, according to PVA David O’Neill.
At 409 rooms, the Griffin Gate is still Lexington’s largest hotel, topping the 367-room downtown Hilton and the 366-room Hyatt Regency. It is twice as big as the Marriott coming to City Center.
