MIDDLETOWN – A historic hotel along the shores of Easton’s Beach was recently sold for a reported 10 figures.
Cranston-based property management firm The Procaccianti Cos. has acquired the Newport Beach Hotel & Suites on Wave Avenue. The 71-room beachfront boutique hotel was purchased along with an additional parcel of land, which Procaccianti says will allow for “further potential development opportunities.”
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Procaccianti declined to say how much the hotel was acquired for and town officials could not verify the sales price, citing current lack of information. However, the Newport Daily News reported Tuesday that Procaccianti purchased Newport Beach Hotel for more than $25 million.
Town officials did confirm to Providence Business News that Procaccianti purchased a 20,000-square-foot parcel of land along Purgatory Road for $1.85 million. Procaccianti Chief Investment Officer Rob Leven said in a statement the hotel and land being bought “aligns perfectly” with the firm’s growth plan in the upscale boutique independent hotel market.
“Newport … is among the top-performing leisure markets in the United States with tremendously high barriers to entry, which amplifies this acquisition as an extremely rare real estate investment opportunity,” Leven said.
The hotel, first built in 1940 with the suite property being constructed in 2008 and located on the Middletown-Newport border, was previously owned by Beachfront LLC, a subsidiary of Newport Hotel Group, according to town property records. The property features a rooftop deck, swimming pool and a day spa.
Town records show the hotel was valued at $6.1 million. Newport Hotel Group’s chief financial officer, Donald S. McCall, is listed as Beachfront LLC’s manager, according to state corporate records.
With the purchase, TPG Hotels & Resorts – a subsidiary of Procaccianti – will manage the hotel, the firm said. TPG Hotels & Resorts President and Chief Operating Officer Ben Perelmuter said in a statement the property will undergo a renovation to replace “soft goods” in guest rooms and also make other various improvements to the facility.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
