BMC Investments Sells Moxy Cherry Creek for $51.3M
BMC Investments, a leading Denver-based fully integrated and experienced developer, has sold its 170-room Moxy Denver Cherry Creek to RLJ Lodging Trust for $51.3 million, or approximately $301,000 per key.
“We are pleased to acquire the recently built Moxy Cherry Creek Hotel, located within the heart of the exclusive Cherry Creek submarket of Denver, which is expected to generate outsized growth for years to come. In 2021, we successfully acquired three high-quality hotels in top growth markets for nearly $200 million, which will enhance our growth profile throughout this cycle,” commented Leslie D. Hale, president and chief executive officer.
The 170-room Moxy Cherry Creek opened in late 2017. The company has engaged the highly-respected, Denver-based Sage Hospitality Group to manage the Moxy Cherry Creek. The company funded the acquisition with the combination of corporate cash and the assumption of $25.0 million of non-recourse secured debt. The seller is of high-quality commercial real estate throughout the United States.
The hotel is one of five hotels located within the core upscale Cherry Creek North neighborhood of Denver, with over 100 retail shops and 50 restaurants situated within a four-block radius of the property. The hotel features amenities such as the signature Moxy Bar and the Cherry Creek Beer Garden in addition to meeting rooms, outdoor event space, complimentary bike rentals, and a state-of-the-art fitness center.
Cherry Creek is Denver’s top upscale, lifestyle submarket that is seeing significant growth in office space, residential units, and the development of mixed-use projects, which will continue to support this area’s growth. Cherry Creek North hotels typically generate an ADR premium above comparable hotels located in Downtown Denver.
Marriott’s Moxy brand combines comfort with a bold, stylish, industrial design and a modern, relaxed feel, which has garnered appeal among a broad range of customer segments, including Millennials, who are increasingly looking for a vibrant, lifestyle/boutique experience-driven hotel stay. Since the first Moxy opened in 2016 in the U.S., the brand has continued to grow at a healthy pace. This growth is being driven by the brand’s strong track record of performance, combined with an efficient operating model and affiliation with the lodging industry’s premier guest loyalty rewards program – Marriott’s Bonvoy.