Colliers arranged the transaction as agent to New Castle
Jekyll Island, GA | Jan. 28, 2022 – New Castle Hotels & Resorts, Jekyll Island’s leading resort hotel operator, acquired the Holiday Inn Resort Jekyll Island, a 158-room full-service, oceanfront resort for $41M. Previously owned by Georgia Coast Holdings LLC, a regional hotel investor and its affiliated operator NorthPointe Hospitality, the hotel sold for $41M subject to a land lease with Jekyll Island Authority, the state of Georgia’s managing entity. The total project cost, including planned improvements, is $48M, or $304K per room. This week’s transaction is consistent with the trend of lodging investment capital flowing to coastal drive-to resorts at valuations exceeding pre-pandemic highs.
Rich Lillis of Colliers arranged the transaction as agent to buyer New Castle. The Holiday Inn Resort was not on the market. The sale resulted from Colliers’ direct sales process.
“This important resort acquisition solidifies New Castle as Jekyll Island’s leading investor and operator,” said Lillis. “Our Colliers team initiated the dialogue, brought the parties together, and managed the transaction for a mutually beneficial outcome. The impressive valuation underscores the market trend of investor preference for drive-to coastal resorts.”
The Holiday Inn Resort Jekyll Island is situated on more than seven acres of oceanfront property, including a quarter mile of beachfront. The family-friendly resort features oversized rooms and suites – all with ocean views. Located between Savannah and Jacksonville, Jekyll Island boasts more than 10 miles of pristine beaches, four golf courses and an oceanfront convention center. Once regarded as a winter retreat for American elites, Jekyll Island has transformed into a year-round resort destination. Jekyll Island has garnered the attention of top institutional investors such as Pebblebrook Hotel Trust (NYSE: PEB) which acquired the Jekyll Island Club Resort in July 2021.