The Hotel Minneapolis, located in a 111-year-old downtown building, has been sold to KHP Capital Partners, a San Francisco investment firm.
The 222-room hotel, at the intersection of 4th Street and 2nd Avenue, will undergo a multimillion-dollar renovation. It is unclear if it will keep its name and affiliation with Marriott’s Autograph Collection, a line of boutique hotels that have access to Marriott Corp. services but retain unique identities.
The 10-story building, a block from City Hall and other government buildings, was built in 1906 as the main office of Security Bank, one of the large Minneapolis banks that eventually became today’s U.S. Bancorp. A decade after it was built, the building became the home of Midland Bank, a firm that later became part of Norwest and, today, Wells Fargo.
When two local companies — Hempel Properties of Maple Grove and Morrissey Hospitality Co. of St. Paul — bought the building in 2006, it was largely empty and they decided to change it from offices into a hotel. They incorporated its marble floors, panels and columns, as well as its bank vaults throughout the design. And Restaurant Max on its main floor became a business lunch destination.
Virginia-based Chesapeake Lodging Trust bought the property for $46 million in 2012. In a statement about this week’s sale, the trust said it used the proceeds “to repay outstanding borrowings under its revolving credit facility.”
Nishil Patel, vice president and treasurer for Chesapeake Lodging Trust, said the sale price to KHP Capital was also $46 million, which included $2 million for furnishings and other property in the building.
KHP Capital didn’t return requests for comment. The hotel will be managed by Los Angeles-based Davidson Hotels & Resorts.
The renovation is scheduled to begin late next year and finish in early 2019. “All areas of the 222-room hotel, including Restaurant Max and all public spaces will be redesigned,” Davidson said in the statement.