The Holiday Inn in the Town of Hamburg has been bought for $3.1 million, as the property's corporate owner sold the last of its Buffalo area hotels.
Lodgian Inc., based in Atlanta, just a few years ago owned four hotels in Buffalo Niagara, including the Hamburg location. But it has sold them off one by one as a part of a larger company plan to trim its portfolio.
The 130-room Hamburg property, at 5440 Camp Road, was sold to Hamburg Lodging LLC. Ram Patel, a partner in the company, said the 130-room property will remain a Holiday Inn and is being renovated.
As a result of the Hamburg deal, Lodgian now owns just two properties in New York State, in Jamestown and Albany. And the Jamestown hotel, a Holiday Inn, is for sale.
In 2004, Lodgian sold the Holiday Inn Resort and Conference Center on Grand Island to local investors for $3.35 million. It then sold two Niagara Falls hotels, the Holiday Inn Select (now a Crowne Plaza Hotel) and Four Points by Sheraton, in separate deals worth a total of $18.35 million.
Lodgian has put 27 additional hotels up for sale as part of a restructuring, and has retained Goldman, Sachs & Co. and Genesis Capital LLC, to launch a review of strategic alternatives the company could use to "enhance shareholder value." The company reported a $20.7 million loss in its fourth quarter.
Patel said he and a business partner own about 10 hotels in Western New York and Jamestown. The others include a Red Carpet Inn in Orchard Park, a Best Western under construction on Route 5 in Lackawanna, and the Clarion Hotel and McKinley's Banquet and Conference Center in Hamburg.