By Jack Stubbs
There have been a number of hotel sales throughout the Puget Sound region in recent months, and a hotel in Marysville changed hands roughly two weeks ago.
On Wednesday, March 21st, the Holiday Inn Express in Marysville, Washington, sold for $17.4 million, or approximately $174,000 per room, according to public records filed with King County. The buyer was CG-MHIE LLC, an entity affiliated with Ted McCaugherty based in Seattle.
The selling entity listed in public documents, Marysville Hotel Properties LLC, shares the same address as Mount Vernon, Washington-based Hotel Services Group, a hotel management company that provides services for hotel owners and investors. The transaction was recorded on March 30th.
The seller did not respond to calls for comment regarding the transaction in time for the publishing of this story.
The Holiday Inn Express, located at 8606 36th Ave. NE., contains 100 rooms. The property offers a variety of room types including one-bedroom, two-bedroom, suite and standard rooms with rates between $133 and $138, according to the hotel’s web site.
Some of the in-room amenities include black-out shades, walk-in shower and flat-screen TV, and some of the hotel amenities available to guests include indoor heated pool, fitness center and on-site laundry facilities.
Located in Snohomish County, the hotel is approximately two miles to the north of Marysville and roughly eight miles north of Everett. Additionally, the property is about nine miles to the northwest of Lake Stevens and sits less than half a mile from Interstate-5.
Hotel Services Group provides a variety of hotel ownership services to its clients including feasibility, design and brand selection services; site groundwork and construction services; property management services; and property sale and liquidation services, according to the company’s web site. The signature of Dan Mitzel, member of Hotel Services Group, appears on public documents. Owner of M&H Contracting LLC, Mitzel has been a northwest Washington developer and contractor since 1982 and has multiple co-ownerships in various business interests, including hotel investments.
The sales prince of $17.4 million, or roughly $174,000 per room, for the Holiday Inn Express in Marysville is slightly less than the average posted in 2017, according to a fourth quarter 2017 hotel market report written by Kidder Mathews. During 2017, and excluding national portfolios, resorts and potential tear downs, there were 23 sales of hotels in King, Pierce, and Snohomish Counties at prices exceeding $2 million. With 2,005 guest rooms, the weighted average price per room was $206,906, which was was 10 percent less than the record average of $228,871 observed in 2016, according to the report.
There have been a number of other hotel sales with similar sales prices that have been recorded throughput the Puget Sound region over the last few months. On March 12th, Seaview Hotel Investment LLC acquired the 105-room Sleep Inn SeaTac Airport Hotel for $17.6 million, or approximately $168,000 per room, from Seattle-based Che Investments LLC. And on February 1st, the Lala Salama Hospitality Inc. sold the 152-room Hawthorne Suites hotel near SeaTac Airport for $17 million, or roughly $111,900 per room.