The Citizen Hotel Sale Sets Record
Sale of the Citizen Hotel this month likely sets a record for the highest price paid per room in city history.
Parties to the sale did not disclose a price when the deal became public in August. County records show the sale, which closed Sept. 1, was for $60 million. At $303,030 per room, that price for the 198-room Citizen is well above those for recent comparable hotel transactions.
The sale of the Citizen Hotel this month fetched the highest per-room hotel sales price in city history.
The sale of the Citizen Hotel this month fetched the highest per-room hotel sales price… more
Dennis McCoy | Sacramento Business Journal
In 2008 the 503-room Sheraton Grand Sacramento Hotel and a 700-space parking garage sold for $130 million to developer David Taylor of Sacramento and the CIM Group Inc. of Los Angeles. That works out to $258,450 per room.
Most recently, the 100-room Sacramento riverfront Le Rivage Hotel changed hands for $16 million in December 2012. That price works out to a per-room price of $160,000. Buyer Urban Commons/Brighton Management LLC then invested $3.2 million to convert the hotel into the Westin Sacramento.
The rich price for the Citizen Hotel could reflect growing interest in downtown locations. The Citizen is four blocks from the new downtown arena, expected to open in the fall of 2016, and three blocks away from the Sacramento Convention Center and four blocks from the Capitol.
Beverly Hills-based Platinum Equity bought the Citizen from the local partnership that developed the hotel, Cal West Partners, a limited partnership managed by Rubicon Partners Inc. of Sacramento.
The 14-story hotel features the trendy Grange restaurant, and rights to 183 parking spaces in a city garage at 10th and I streets.
Platinum brought in a new operator to manage the hotel, Crescent Hotels & Resorts, and it switched the reservation system from Joie de Vivre to the global reservation platform of Marriott International.
The hotel is now part of the Autograph Collection, Marriott’s portfolio of unique boutique properties. Citizen was converted into a hotel in 2008 from a historic 1925 office building.
Mark Anderson covers technology, agriculture, banking and finance, venture capital, energy, mining and hospitality for the Sacramento Business Journal.