In focus on efficiencies and core mission, UC to lease Kingsgate Marriott Hotel and Conference Center

During its October 16, 2018, meeting, the University of Cincinnati Board of Trustees approved the 99-year sale/lease of its Kingsgate Hotel and Conference Center located at 151 Goodman Drive.

The final closing with purchaser AJ Capital Partners will likely take place in December or early January, pending the successful completion of a due diligence period.

Up-front payment for this lease will be $23.5 million, where the funds and annual proceeds from investments will go to support the university’s teaching, research and service mission as outlined in university strategic direction, Next Lives Here.

According to Robert Ambach, senior vice president for administration and finance, the sale/lease allows the university to efficiently focus on its primary mission. He explained, “As an institution, the university is dedicated to undergraduate, graduate and professional education and research. We are committed to fulfilling that mission as efficiently as possible, serving as responsible stewards of our resources and the investments made in education by the public and by our students and their families.”

The university originally built and dedicated the hotel in 1999. UC leased its operations to Marriott International in order to meet the full-service guest accommodation needs of visitors, prospective and current students and their families, as well as the accommodation and conference needs of others in the campus community.

Until recently, it was the only hotel in close, walking proximity to campus. But the stability and expansion of development in the Uptown area has brought other hoteliers and chains to the area.

Ambach added, “The environment has changed, and the university no longer needs to own a hotel to meet the needs of our community.  This move now allows us to generate investment returns and to refocus those resources on our essential purpose as a leading academic and research institution.”

The university engaged real estate firm JLL to manage the procurement process and identify a buyer for the hotel.

"Many universities' real estate portfolios offer tremendous opportunities to unlock value and direct resources toward fulfilling the school's core mission," said Chris Roth, chief operating officer of JLL's Public Institutions practice. "We were thrilled to help the university identify and monetize this unique property while retaining the amenity."

 AJ Capital Partners will assume ownership and ultimate responsibility for operations upon the sale/lease closing. The hotel will remain continuously open and operating even as it is converted to become part of AJ Capital Partner’s boutique hotel collection.