Ten operating hotels managed by Denver's Sage Hospitality Resources in seven states and owned by a variety of investors are to be auctioned off next month. Most have been marketed under the "CoCo Key Water Resort" brand and feature indoor pools and other water-sport amenities. The properties are in Connecticut, Illinois, Massachusetts, Missouri, Nebraska, New Jersey and Ohio.
The auction is being managed by the hotel division of Jones Lang LaSalle and Real Estate Disposition Corp. and is being conducted online via the real estate auction website auction.com.
The properties were being quietly shopped to potential buyers last fall and have been listed for several days at auction.com. Bidding is to begin Feb. 15. The hotels are being auctioned "free and clear of the existing management agreement," according to the auction.com listings.
A separate CoCo Key hotel in Orlando, Fla., evidently is not included in the auction.
The hotels are listed as owned by entities under various names, including Wave Development of Milwaukee, Hexagon Investments and several variations of WPH.
According to a Denver Business Journal report in 2007, Sage had joined with Wave Development and Hexagon Investments in 2006 to launch an initiative to develop water resorts in several states under an affiliate, CoCo Key Water Resorts LLC. The plan called for eventually converting 17 to 20 underperforming business-class hotels to CoCo Key water resorts.
But Sage is only the property manager of the hotels, Sage executive Ed Baklor told the Business Journal of Milwaukee back in October, when Jones Lang LaSalle began a quiet marketing effort. "Wave did the development work (and) Sage managed the properties," Baklor said.
Mike Hipp, executive vice president of Hexagon Investments, told the Business Journal of Milwaukee that the investment firm -- linked to magazine mogul Roy Reiman and his family -- is a minority investor among "a lot of investors" in the water park projects. He also said the properties have been "performing fine."
Sage currently operates more than 60 hotels in 26 states, according to its website.
Here is a list of the properties to be auctioned:
- CoCo Key Water Resort, Waterbury, Conn. -- Rooms: 282. Starting bid: $1.5 million.
- Best Western Clock Tower Rockford, Rockford, Ill. -- Rooms: 245. Starting bid: $2.9 million.
- Crowne Plaza Boston North Shore, Danvers, Mass. -- Rooms: 366. Starting bid: $6.9 million.
- Courtyard by Marriott Fitchburg and CoCo Key Water Resort, Fitchburg, Mass. -- Rooms: 254. Starting bid: $2.7 million.
- Holiday Inn Kansas City Southeast, Kansas City, Mo. -- Rooms: 369. Starting bid: $1.9 million.
- CoCo Key Water Resort Omaha, Omaha, Neb. -- Rooms: 383. Starting bid: $1.9 million.
- Marriott Mount Laurel and CoCo Key Water Resort, Mount Laurel, N.J. -- Rooms: 283. Starting bid: $4.9 million.
- Cherry Valley Lodge, Newark, Ohio -- Rooms: 200. Starting bid: $2.9 million.
- Crowne Plaza Cincinnati North, Cincinnati -- Rooms: 257. Starting bid: $600,000.
- Fairfield Inn Cincinnati North, Cincinnati -- Rooms: 95. Starting bid: $500,000.