Local lodgings get new Los Angeles landlord

FORT COLLINS – The Marriott flag will continue to fly in Fort Collins, but the properties it’s attached to are under new ownership.

The longtime owners of the Marriott Hotel on Horsetooth Road, The Courtyard by Marriott and the Residence Inn – both on Oakridge Drive off Harmony Road – have sold all three as a package to Integrated Capital LLC, a hotel owner and operator based in Los Angeles.

“The Marriott has always performed as an investment quite well,´ said David Everitt, president of the Everitt Cos., which with local developer Sitzman-Mitchell & Co. headed the general partnership that sold the properties. “We liked the cap rates on hotels right now. It’s a cyclical business, and this was the right time in the cycle (to sell).”

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Public records show that the three properties, plus three-and-a-half acres of land for new development adjacent to the Marriott Hotel, sold for a total price of $41.68 million. The deal, which according to Everitt took 90 days to complete, closed on Sept. 28.

The full-service Marriott Hotel at 350 E. Horsetooth Road is the second-largest hotel in Fort Collins after the Hilton on Prospect Road. Sitzman-Mitchell built the six-story, 230-room property in 1985.

“What you have to keep in mind is the money that has to be spent to keep hotels like this one competitive with whatever new is being built,” Everitt added. “There has to be commitment to ongoing redevelopment of a property like that.”

The Everitt Cos. acquired an ownership interest in the Marriott in 1996, when it partnered with Sitzman-Mitchell to build The Courtyard by Marriott, a 113-room, two-story hotel geared to business travelers, at 1200 Oakridge Drive. The partners completed the extended-stay Residence Inn by Marriott next door at 1127 Oakridge Drive in 1999. Three years later, 35 suites with separate living rooms and kitchens were added to the three-story Residence Inn’s 113 rooms.

Integrated Capital is a real estate private equity group with a focus on acquisition, development and operation of hotels. Since its founding in 2004, Integrated has purchased Doubletree Hotels in California and another Residence Inn in Maryland.  Founder Kenneth H. Fearn Jr. was formerly a managing director and CFO at private equity real estate firm Maritz, Wolff and Co. in St. Louis.