Fitchburg Hotel To Change Hands
The Courtyard by Marriott in Fitchburg is expected to be sold at the end of the month to a Michigan-based company.
Durga LLC of Flint, Mich., is buying the hotel, which also includes the CoCo Key Water Resort, from Denver-based Sage Hospitality.
Jay Davis, general manager at the Fitchburg hotel, confirmed that a sale is in the works and said the property will keep its name and nearly all of its 231 full-time and part-time employees.
Kelly McCourt, a spokesperson for Sage Hospitality, also confirmed the sale, which is expected to close June 29.
Neither Davis nor McCourt would go on record with the sale price. However, Rich Weinberg, a spokesman for the website Auction.com, said the accepted bid price is $2.8 million. Auction.com was schedule to hold an online commercial auction on behalf of Sage Hospitality on June 7. However, Durga placed its bid on the property prior to that, according to Weinberg, which called off the auction.
The Boston Business Journal reported June 2 that an earlier online auction did not result in a sale.
Vijayakumar Vemulapalli, president of Durga LLC, could not be reached for comment.
If the bid price of $2.8 million is finalized at the end of the month, it will be significantly less than what Sage paid for the property in 2007. At that time, the company, under the name WPH Fitchburg LLC, paid $4.2 million, according to land records.
WPH Fitchburg also invested in the property, working with Wave LLC of Milwaukee to construct the water park. WPH Fitchburg took out a $5.4 million mortgage for the property from Wisconsin-based Morgan & Ilsey Bank on Nov. 6, 2007, according to land records. Renovations were also spurred by a tax increment financing deal approved by city officials three years ago, according to Tom Caputi, assessor for the city of Fitchburg.
Davis said that the hotel is going about business as usual and that the pending sale has not affected operations.
Davis also said that the sale allows for access to additional resources and that he expects to complete some unfinished renovations at the property.
Durga LLC also recently purchased a Cincinnati hotel from Sage Hospitality, McCourt said. Sage has been in the process of divesting several of its properties, according to a report from the Denver Business Journal.
Davis said that Vemulapalli has hired St. Louis-based Midas Hospitality LLC to help manage the Fitchburg and Cincinnati hotels.
The Crowne Plaza Boston North Shore in Danvers, another former Sage property, sold earlier this year for $10 million to a New Jersey-based company, according to the Boston Business Journal.
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