The new investors say there are no immediate plans for changes, but they will infuse fresh expertise and money.
By JENNIFER FARRELL
Published February 20, 2004
CLEARWATER - Connecticut developer David Mack and Greenfield Partners, a Connecticut-based team of real estate investors, has agreed to buy a majority share in the Holiday Inn Sunspree Resort on Clearwater Beach.
Lane Hospitality, a hotel management firm based outside Chicago in Northbrook, Ill., will keep a minority stake in the property and continue to manage the hotel, under a deal reached Thursday. All parties declined to state the purchase price.
For months, rumors have circulated that the aging 10-story hotel on 5.5 acres with spectacular beachfront views would be sold to make way for condominiums.
On Thursday, all parties to the deal said there are no immediate plans to redevelop the property. The parties were to finish signing the contract today.
"At this point," said Lane President and CEO Bill DeForrest, "we're planning on running it as a hotel for the foreseeable future."
Mike Bradley, Greenfield senior vice president, said the group will operate the hotel for at least 12 months.
In that time, the partners will evaluate their options, said Mack.
"We're still trying to figure out where we're going," he said. "No option is ruled out."
The 218-room hotel is roughly 40 years old and needs a significant investment to maintain, according to DeForrest. He said Lane decided to bring in new partners to help pay the bills.
"We tried to find people who we thought were very smart hoteliers but also understood the beach and what it takes to have a good, successful business in this market," he said. "If at some point the decision is made to do a different type of development, we wanted to have a partner who has clearly demonstrated an ability to do high quality work in other types of real estate."
Mack is developing Belle Harbor, a luxury condominium complex on the north end of the beach. The 6.2-acre project boasts two high rises, a 99-foot tower and a 130-foot tower, with townhomes on the perimeter at 501 N Mandalay Ave.
Mack said he has also owned hotels, including a Marriott, and Bradley said Greenfield Partners currently owns 10 hotels across the country, including four Marriotts.
"We both have considerable hotel experience and exposure," said Mack.
Sunspree is profitable as a hotel, they said, and agreed the land is also attractive for its location and views.
The resort, at 715 Gulfview Blvd., is the last hotel on the beach before the bridge to Sand Key.
"It's hard to get a property that big on the open water," said Mack's Clearwater attorney, Ed Armstrong. "That's what makes it unique."
