The Graves 601 Hotel in downtown Minneapolis is being sold to Loews Hotels & Resorts, which made an off-market, unsolicited offer bid on the popular luxury hotel.
Jim Graves, founder of hotel owner, Graves Hospitality, said the deal is a strategic move that will enable the company to redeploy capital into other higher-growth assets and enable it pursue other investments.
"Frankly, this sale creates revenue for new development, management and investment opportunities that result in an even higher rate of return," said Graves. "Accepting their offer was simply good business."
The deal gives Loews, a national chain, a Midwestern presence with an iconic, full-service hotel. The 255-room hotel is adjacent to downtown's Block E development and in 2012 was named one of the best hotels in the world by Travel and Leisure magazine. It was built as a Le Meridien hotel as part of the Block E development and became Graves 601 in 2005 when that company was sold.
Terms of the deal weren't disclosed, but it's expected to close in July. Graves said the deal "sets a high watermark for value."
Graves Hospitality still owns and manages several hotel brands, including a Marriott Residence Inn downtown. The company also manages 10 restaurants and plans to open another six by the end of the year.