Fairmont President's Club - Fairmont Sonoma Owners Said to Hire Broker to Sell Resort

http://www.businessweek.com/news/2011-10-06/fairmont-sonoma-owners-said-to-hire-broker-to-sell-resort.html

Oct. 6 (Bloomberg) -- The owners of the Fairmont Sonoma Mission Inn & Spa in Northern California’s wine district hired Hodges Ward Elliott to sell the luxury resort for about $100 million, according to two people with knowledge of the listing.

Fairmont Hotels & Resorts Inc., based in Toronto, holds almost 20 percent of the 226-room property, according to the people, who asked not to be named because the sale is private. The majority is owned by Crescent Real Estate Holdings LLC, a joint venture of Barclays Plc unit Barclays Capital and Fort Worth, Texas-based Goff Capital Inc., the people said.

Please forgive a question that is perhaps pretty stupid. If Fairmont actually only owns 20%, does the fact that they're selling it actually mean that it will no longer be a Fairmont? Or might it still be a "Fairmont managed"'property?

Please forgive a question that is perhaps pretty stupid. If Fairmont actually only owns 20%, does the fact that they're selling it actually mean that it will no longer be a Fairmont? Or might it still be a "Fairmont managed"'property?

Fairmont in recent years, have sold their properties, with management contracts in place.. the management contracts ranges, but I've seen it as high as 50 years.. i.e. Fairmont Orchid..

I don't know how much the land is worth (real estate values in napa/sonoma and further north are WAY down) but I can't imagine the SMI is worth 100M, that place is in real need of a refresh.

If Fairmont actually only owns 20%, does the fact that they're selling it actually mean that it will no longer be a Fairmont?

http://www.pressdemocrat.com/article/20111007/BUSINESS/111009567

Operations at the 228-room luxury hotel will not be affected, said Michelle Heston, a spokeswoman for Fairmont.

“It’s an ownership issue,” she said.

I don't know how much the land is worth (real estate values in napa/sonoma and further north are WAY down) but I can't imagine the SMI is worth 100M, that place is in real need of a refresh.

Sonoma has been in need of a refresh for the past 10 years, as long as I've been an FPC member..

There has been some high profile hotels going into receivership.. Fairmont Orchid, Ritz Kapalua, Grand Wailea, and Four Seasons Maui are just examples..

So there is a bit of financial pressure for hotel owners to make ends meet right now..