Citizen Hotel Sold for $53 Million, Records Confirm
Citizen Hotel Sold for $53 Million, Records Confirm
Sacramento Business Journal
09/11/19
Citizen Hotel Sold for $53 Million, Records Confirm
By Emily Hamann
Downtown Sacramento’s Citizen Hotel sold for $53.2 million in July, county records show. That’s $7 million less than what Platinum Equity paid for the property the last time it changed hands, in 2015.
In the sale, Miami-based private equity firm Cambridge Landmark purchased the boutique hotel from Beverly Hills-based firm Platinum Equity.
Platinum Equity’s 2015 purchase of the property was for $60 million, equating to $303,030 per hotel room, which was believed to be a record purchase price for a Sacramento hotel.
The new sale valued the hotel at $271,428.57 per room, which is still higher than other recent hotel sales. According to data from Atlas Hospitality Group, the median hotel sale price in California was $130,025 per room in the first half of the year, which is up 146% over the last 10 years.
Representatives of Cambridge Landmark, which specializes in the hotel industry, declined to confirm or comment on the price. Representatives of Platinum Equity did not respond to requests for comment. Jones Lang LaSalle Americas Inc. helped broker the deal. When asked to confirm the price, JLL communications manager Megan Dolan said in an email that the county records figure of $53.2 million was inaccurate, but did not provide a different figure.
The 196-room Citizen Hotel has been a part of Marriott International Inc.’s Autograph Collection since 2015. As part of the franchise agreement with Marriott (Nasdaq: MAR), the hotel must regularly update its rooms.
It is nearly due for a renovation, which could be one reason for the lower price. The Citizen Hotel will undergo a renovation of its rooms, suites and public spaces over the next two years.
The hotel is at 926 J St. in downtown Sacramento, and also includes Grange Restaurant & Bar, which was recently recognized by the Michelin Guide with a Michelin Plate award.
Local partnership Cal West Partners developed the historic building, which was built in 1925 as one of Sacramento’s earliest high-rises, into the Citizen Hotel in 2008.
