CBRE Arranges Sale of Two Marriott Hotels in Montana

CBRE Hotels arranged the sale of the AC Hotel by Marriott, the Residence Inn by Marriott, and The Mercantile retail center in downtown Missoula, Montana. Evermore Partners of Denver, Colorado, in partnership with New Castle Hotels & Resorts, acquired the properties near the end of the first quarter of 2023.

CBRE’s Pacific Northwest hotel team lead by Chris Burdett and Matthew Behrens represented the seller, HomeBase Partners of Bozeman, Montana.

“The redevelopment of The Mercantile and the development of the adjoining Marriott hotels has been a labor of love for HomeBase Partners, and we are thrilled to transfer the ownership to the next steward of such a remarkable project. Missoula has been a great partner in supporting the redevelopment of the downtown core, especially the Mercantile and our hotels, and we look forward to our next chapter in Missoula,” said Andy Holloran of Homebase Partners.

AC Hotel Missoula Downtown is located at 175 North Pattee Street. Built in 2021, the 105-room, six-story hotel has three food and beverage options, including a rooftop bar that has views of downtown Missoula. The hotel also has a fitness center, meeting space and valet parking.

Residence Inn Missoula Downtown and The Mercantile are located at 125 North Pattee Street. Built in 2019, the 175-room, five-story hotel has two event spaces, a fitness center, valet parking, rooftop deck, indoor pool and breakfast area. The Mercantile, which is directly connected to the Residence Inn, is a retail center with restaurants, shops and an indoor cycling studio.

Seth Wolkov of Evermore Partners said, “This opportunity represents a pivotal point in Evermore’s history and our first venture into Montana and is perfectly aligned with our focus on key urban, college, and core mountain communities in the Rocky Mountain region. Evermore is thrilled to be the new owners of such an important piece of Missoula’s history, and we look forward to being a part of the community for years to come. We are excited to work with the excellent on-site team and to continue providing the best-in-class experience guests at the hotels expect.”

The two hotels are centered in downtown Missoula and are within walking distance to numerous restaurants, cafes, theaters, concert venues, and the Clark Fork Riverfront Trail. The hotels are also within close proximity to ski areas, outdoor activities and the University of Montana, which generates steady demand throughout the year.

“Montana’s favorable business environment, abundance of outdoor activities and scenic landscape has made the state increasingly attractive for commercial real estate investments, so we were thrilled to provide an attractive solution for both parties. Despite economic headwinds and a tight lending environment, we were able to work with the buyer, seller and Stockman Bank to help execute the sale,” said Burdett of CBRE Hotels.