Flatley sells two Hyannis hotels for $28.9 million
A partnership affiliated with the nation's largest hotel trust buys the Tara, Cape Codder.
HYANNIS - Thomas J. Flatley has sold his two hotels on Cape Cod for close to $29 million.
Flatley sold the 224-room Tara Hyannis for $19,973,738 and the 261-room Cape Codder for $8,967,760, according to real estate records compiled by Banker Tradesman, a Boston-based trade paper. Both hotels, among the largest on the Cape, are in Hyannis. No mortgages were recorded on the sales.
Flatley, based in Braintree, sold the properties on Sept. 12 to SLT Realty Limited Partnership, according to Banker Tradesman.
The price paid for the Tara Hyannis is among the highest prices paid for a hotel property on Cape Cod. In 1986, Chatham Bars Inn in Chatham fetched $23.5 million. In 1987, the Sea Crest Resort and Conference Center in North Falmouth brought $19.08 million.
SLT is connected with Starwood Lodging Trust of Phoenix, Ariz. Starwood, the largest hotel real estate investment trust in the United States, previously announced it was buying Flatley's entire 15-hotel operation for $470 million. Starwood said it completed the deal earlier this month.
Neither Flatley nor a Starwood representative was available for comment yesterday on the sale.
In a previous release, Starwood said it was paying about $110,000 per Flatley hotel room, for a total of 4,252 rooms.
Based on the local transaction prices, the price at the Tara was $89,168 per room. At the Cape Codder, the price was $34,359.
Gene Burman, a commercial real estate broker at Rene Poyant Real Estate in Hyannis, called the Tara and Cape Codder room price averages "very, very good numbers for Cape Cod."
Burman said Cape hotel rooms more typically would sell for an average of $20,000 to $30,000.
The Tara Hyannis, at the West End Circle, has an 18-hole golf course, a restaurant, two lounges, a health club, indoor/outdoor pools and tennis courts. The hotel also has 29,000 square feet of meeting space and a 14,000-square-foot conference center.
The Cape Codder, on Route 132, has a restaurant, two lounges, a health club, indoor/outdoor pools and tennis courts. The hotel also has 21,000 square feet of meeting space and a 9,000-square-foot ballroom.
About 600 people work in the Cape hotels.
Burman said the sale is not only good for Flatle Starwood, but for the Cape as a whole.
The broker said Starwood would advertise the two Cape properties in a much wider market than Flatley. As a result, the hotels will tend to fill up more quickly, and thus lead for an increased demand for rooms at other Cape hotels, Burman said.
Flatley bought the Cape Codder in 1992 for $6.9 million and the Tara Hyannis in 1986 for an undisclosed amount.
He still owns the Southwind shopping center in Hyannis and the Falmouth Mall.
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