Georgia Coast Holdings II Acquires Jekyll Island's Beachview Club Hotel; Property will Become Part of the Holiday Inn Resort
Deborah Bayliss | The Brunswick News, Ga. | April 21, 2017 1:00am
April 21--The Beachview Club Hotel on Jekyll Island is under new ownership.
Coast Holdings II LLC purchased the hotel from Resort Club LLC in a move that gives Coast Holdings adjacent waterfront hotels. The company also owns the recently renovated Holiday Inn Resort next door on Beachview Drive.
The sales transaction for the Beachview Club Hotel on Jekyll Island has closed with a transfer of ownership from Resort Club LLC to Georgia Coast Holdings II, LLC, who purchased the property.
"(The Jekyll Island Authority) is excited about the sale," said Jones Hooks, executive director of the Jekyll Island Authority in an email to The News. "We've had a great working relationship with the owners of the Holiday Inn Resort, who have done a tremendous job with their property and new Beach House Restaurant. We've already received their plans for the initial renovations for Beachview and are looking forward to seeing much-needed improvements made to the property."
Colliers International arranged the off-market acquisition of the oceanfront hotel.
Rich Lillis, executive vice president and national director of Colliers Hotels specialty practice group, represented Georgia Coast Holdings in the transaction.
"Opened in 2014, Holiday Inn Resort quickly became one of Jekyll's best performing hotels," Lillis said. "Georgia Coast Holdings II, LLC strategic acquisition of Beachview Club Hotel adds a new dimension of premium oceanfront guest experience through the rare opportunity to acquire an adjacent oceanfront hotel. Colliers Hotels was uniquely qualified to arrange this sale and manage some of the complexities inherent with a land lease arrangement with the local governing entity of Jekyll Island."
According to the terms of the lease, at the conclusion of the construction period (up to 36 months) or upon completion of the renovation and opening for guests, whichever occurs first, Georgia Coast will be subject to the existing terms of the Holiday Inn Resort which is a base rent of $2,000 per acre, per month. That shakes out to $5,240 per month for the Beachview parcel and $14,182 per month for the Holiday Inn parcel for a total base rent of $19,422 per month or $233,064 per year, plus three percent of total gross revenues.
Georgia Coast's plans are to renovate and update the property at 721 North Beachview Drive and incorporate the Beachview Hotel into the Holiday Inn Resort, expanding the resort's beach frontage and amenities.
The plan is to do a first-round of renovations to improve the property for the summer 2017 season and more extensive renovations once the season ends.