Napa Valley Four Seasons headed for near-record sale

Resort could trade for more than $2 million per room

National Weekend Edition /
Feb.February 14, 2021 12:00 PM
The Napa Valley hotel is surrounded by vineyards and the Palisades Mountains. (Four Seasons)

The Napa Valley hotel is surrounded by vineyards and the Palisades Mountains. (Four Seasons)

 

A recently built Four Seasons hotel in Napa Valley may be headed for a near record-breaking sale price.

A handful of investors have made competing bids upwards of $170 million for the 85-room property, according to the Wall Street Journal.
That would be around $2 million per room, a price threshold broken only twice before in the U.S. — by the Montage Hotel Beverly Hills and a Four Seasons in Hawaii.

The Napa Valley property was built by Boston-based Alcion Ventures. Managing director Martin Zieff said the firm spent five years picking the development site and 10 years building the property. It is set to open in the second quarter of this year.

The coronavirus pandemic rendered 2020 one of the worst years ever for the U.S. hotel industry and the outlook for 2021 isn’t great. STR projects that industry revenues won’t fully recover until 2024.

Opportunistic investors have raised hundreds of millions of dollars to scoop up distressed properties on the cheap.

Investors are confident in the Napa Valley Four Seasons for a few reasons. Wildfires in 2017 destroyed some of the high-end resort properties in the area, reducing competition. Two of the remaining resorts, run by Auberge Resorts Collection, performed well in the latter half of 2020. Demand for boutique-style properties overall remains healthy.

“It shows the resiliency of the luxury market, especially the smaller boutique properties,” said Dan Peek, president of the hotel group at Hodges Ward Elliot.

[WSJ] — Dennis Lynch 


Related Articles

arrow_forward_ios
The “Raising The Bar Recovery Fund” will distribute a collective $3 million to eligible businesses across New York State. (iStock)
Struggling restaurants to get $5K lifeline from state
Struggling restaurants to get $5K lifeline from state
Sam Nazarian (Photo by Kevin Scanlon)
The Closing: Sam Nazarian
The Closing: Sam Nazarian
Governor David Ige and Kauai Island (Getty; Unsplash)
Hawaii tightens rules for visitors to Kauai
Hawaii tightens rules for visitors to Kauai
Extended Stay America CEO Bruce Haase (Extended Stay, HomeWell Francising)
Extended Stay America weathering pandemic better than rivals
Extended Stay America weathering pandemic better than rivals
This winter, U.S. travelers may be flocking to warmer destinations with eased restrictions (Getty)
U.S. travelers flock to warmer destinations with eased restrictions
U.S. travelers flock to warmer destinations with eased restrictions
Rachel Brosnahan and the property (Credit: Jose Perez/Bauer-Griffin/GC Images)
Lakeside lodge for “Marvelous Mrs. Maisel” hits the market
Lakeside lodge for “Marvelous Mrs. Maisel” hits the market
The property
“Schitt’s Creek” motel hits market after Primetime Emmy sweep
“Schitt’s Creek” motel hits market after Primetime Emmy sweep
Dell CEO Michael Dell, Google CEO Sundar Pichai and Tesla CEO Elon Musk (Getty; iStock)
CRE is doing better in cities where tech dominates
CRE is doing better in cities where tech dominates
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...