Sacramento Business Journal
Holiday Inn Express in El Dorado Hills Sold for $21 Million
By Emily Hamann
A Holiday Inn Express in El Dorado Hills fetched a high price when it sold last month.
The 93-room hotel in the El Dorado Hills Town Center sold for $21 million, or $225,806 per room.
“This Holiday Inn Express is probably one of the nicest, if not the nicest, well-constructed Holiday Inn Expresses that my firm has ever worked on,” said Justin Myers, vice president of Atlas Hospitality Group, who helped broker the deal. Holiday Inn Express is among the brands owned by Atlanta-based InterContinental Hotels Group (NYSE: IHG).
Atlas Hospitality brokered the previous deal when the hotel was last sold for $14.4 million in 2015.
The high sale price of the property is another sign of the booming hotel industry in the Sacramento area.
“The numbers justify the price per room and the purchase price because the property was performing very well,” Myers said.
According to data from Atlas Hospitality, 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 the last 10 years. Occupancy rates for hotels remain high, and room prices and revenue per room continue to rise every year. Throughout the state, hotels are posting record profit and revenue.
Myers said the buyer, who bought the property under the name American Koyu Hotels LLC, is an international group whose other Northern California holdings include a Holiday Inn Express and a golf course, both in Napa.
Myers said it was both the location, with its proximity to El Dorado County wine country, and the hotel itself that helped attract the buyer.
“They felt like this market had the corporate demand as well as the leisure demand,” Myers said. “The product was just exceptional.”
Myers said this property is unlike most other hotels with the Holiday Inn Express brand.
“Just from the quality of construction, size of rooms,” Myers said. “It’s above and beyond what a typical Holiday Inn Express offers.”
The hotel completed a $2 million renovation of its guest rooms and public areas last year.
“The buyers did not have to spend any money on a property improvement plan,” Myers said. “In our industry that’s what we call turnkey.”