The Mainstay Hotel, located at 151 Admiral Kalbfus Road in Newport, has sold for $14,340,000, according to Lila Delman Real Estate.
David Lawrence, Lila Delman Sales Associate, represented the seller, Atlantic Beach Hospitality Group, while Gregory Arakelian, Lila Delman’s Senior Commercial Consultant, represented the buyer, Philip Hospod of Dovetail +Co.
This transaction marks the highest commercial mixed use sale in the history of the current Rhode Island MLS.*
“I believe in a collaborative approach to commercial real estate development,” commented Gregory Arakelian in the announcement. “In this most recent transaction, I was able to introduce a visionary hotel developer to a potentially rewarding investment which can be improved through thoughtful and creative design and in turn provide a fresh and distinctive destination for Newport’s vibrant visitors and residents.”
“Putting together this off-market transaction marks a historic achievement for myself, Greg, and Lila Delman Real Estate,” added David Lawrence in the announcement. “This sale speaks volumes on the cooperative environment fostered at our company and the great benefit it provides our clients.”
“As a firm, we are committed to and excited for our continued expansion into the realm of commercial real estate,” remarked John Hodnett, Lila Delman’s President / Broker-Owner in the announcement. “I commend Greg & Dave on their latest success and consider them instrumental as we grow our commercial division.”
Located in Newport’s North End, The Mainstay Hotel is a 200 room, full service hotel equipped with a pool and on-site restaurant.
Arakelian says his buyer looks forward to redeveloping the hotel with an aesthetic mind for its next wave of discerning guests and community members.
*This representation is based on information from the Rhode Island State Wide MLS for the period of January 01, 1993 – January 28, 2019. Commercial Mixed Use refers to sold properties with CMM designation on MLS. The MLS does not guarantee and is not in any way responsible for its accuracy. Data maintained by the MLS may not reflect all real estate activity in the market.
The following press release was provided to What’s Up Newp on January 29th regarding the acquistion;
Accomplished hotel developer Phil Hospod announced the launch of Dovetail + Co, a hotel ownership and development company focused on creating value through design, experience, and capital. The company’s first acquisition, in partnership with JEM Holdings, is the Mainstay Hotel in Newport, a 200-room full-service hotel with onsite restaurant and pool. With the purchase, Dovetail + Co plans a significant redevelopment that will transform the property into a vibrant hideaway that is grounded in Newport’s colorful history and celebrates the city’s emerging culinary and art scenes.
Led by Hospod, Dovetail will reposition and redevelop the property for a new generation of visitors and their families. Dovetail has already enlisted creative design studio Reunion Goods & Services to reimagine the guest rooms and public areas. Hospod is also excited to work with dynamic, local talent to transform the onsite restaurant and other amenities.
“Our goal is to create a fun and comfortable experience for visitors and locals that leans on Newport’s past, but celebrates its present—here and now,” Hospod said. “A friendly home base, where people can mingle, relax, and enjoy great food, but also get inspired to discover everything we love about Newport—all within minutes of the hotel.”
Located in North Newport, the Mainstay Hotel is convenient to downtown Newport—renown for its Gilded Age mansions, America’s Cup sailing, sandy beaches, and rugged coastline—and Naval Station Newport—a U.S. Navy base with approximately 5,800 employees and 17,000 students. Dovetail is keen to contribute to the revitalization of North Newport, creating jobs and improving this prominent gateway to the City by the Sea and Aquidneck Island. Hospod also has deep ties to Rhode Island. His extended family resides in the state’s East Bay, and he and his wife married at the Herreshoff Marine Museum & America’s Cup Hall of Fame in Bristol. Since 2008, he’s spent his summers sailing Narragansett Bay, picnicking at Newport Polo matches, and sipping Del’s Lemonade at the Bristol Fourth of July parade—the oldest in the nation.
The New York-based Dovetail + Co aims to build a diverse portfolio of unique hotel properties in both established and emerging markets in the Northeast and Mid-Atlantic. Hospod believes in creating memories, not commodities. It’s an ethos he honed most recently as part of Sydell Group’s senior leadership team, where his notable achievements include Freehand New York and The LINE DC, award-winning and market-defining developments.
“I’ve had the good fortune to work with some of the industry’s best throughout my career,” Hospod said. “As I launch Dovetail, I look forward to furthering the landscape of genuine and imaginative hospitality.”