Graves Hotel In Downtown Minneapolis Is Sold
Graves Hospitality announced Thursday that it plans to sell its namesake Graves 601 Hotel in downtown Minneapolis to New York-based Loews Hotels & Resorts for an undisclosed sum.
The Minneapolis-based hospitality company said Loews made an unsolicited offer, and the deal is expected to close in July. The two companies have been in talks about a deal since the beginning of the year.
Graves 601 has 250 rooms, 21 floors, 20,000 square feet of meeting space, and three different restaurants—Bradstreet Crafthouse, RelevÃ© Champaign Lounge, and Cosmos.
Jim Graves, the founder of Graves Hospitality who also recently launched a short-lived Congressional campaign, said the sale of Graves 601 will help the company expand in other areas of its business.
“We’ve always maintained a clear eye on the future and an unwavering commitment to creating returns for our investors,” Graves said in a statement. “Frankly, this sale creates revenue for new development, management and investment opportunities that result in an even higher rate of return. Accepting their offer was simply good business.”
Graves Hospitality owns more than 100 hotels and restaurants, as well as residential and commercial properties. Its portfolio includes ownership and management of hotel brands such as Hilton, Radisson, IHG, and Marriott.
“The revenue from the sale will help us develop in new regions,” company spokesman Jay O’Neill told Twin Cities Business. “Restaurants are a heavy focus right now; we have two opening in just the next month or two. But we are also keeping our eyes open for new opportunities in hotels.”
Graves Hospitality said it is on track to open six more restaurants this year, including Rival House in St. Paul later this month.
“This sale, like the 2012 sale of our Hotel Williamsburg in Brooklyn, sets a high watermark for value,” Benjamin Graves, principal of Graves Hospitality, said in a statement. “We’re incredibly proud of our ability to adeptly capture markets with relevant and exciting projects. Repeatedly, strategic reinvestment has proven to be a keystone of our company’s success.”
In the past two years, the company has taken over management of two properties in St. Paul: the Crowne Plaza St. Paul Riverfront Hotel and the DoubleTree St. Paul Downtown Hotel—which the company said together account for nearly half of the hotel rooms in the city. Graves is rebranding the Crowne Plaza as Minnesota’s first InterContinental luxury hotel.
Graves 601 is among local hotels that have undergone renovations in recent years. Among other upgrades, it transformed the sixth floor of Graves 601 into a luxury spa earlier this year.
Twin Cities Business profiled Jim Graves in 2009, when the company was developing luxury hotels in New York despite the effects of the recession.