The sale of two Bethany Beach-area hotels has been announced by the hotels’ new owner.
Bethany Beach Ocean Suites, the boardwalk-fronting hotel completed in 2015 in downtown Bethany, and the Holiday Inn Express hotel on Jefferson Bridge Road, just outside town limits, have been sold to for a total of $44 million.
The sale ends months of speculation over the ownership of the Ocean Suites hotel, built by developer Jack Burbage on the site of the former Bethany Arms motel. The two hotels were purchased by a New York-based hospitality investment firm, EOS Investors LLC, on May 19.
EOS Investors is a four-year-old private firm; the seller was Bluewater Development Corporation, an Ocean City, Md., firm led by Burbage and his son, Todd Burbage.
“EOS is excited to welcome two additional drive-to leisure properties to its portfolio while expanding its footprint in the Delaware beaches,” EOS Managing Director Tom Burns said. “These two assets continue our strategic approach of identifying unique assets in high barrier-to-entry markets with attractive long-term demand growth.”
EOS was represented in the sale by Savills, a global commercial real estate advisory company.
The Bethany Beach Ocean Suites sold for $32 million. The 112-room hotel is part of the Residence Inns by Marriott group and features a restaurant, 99 Sea Level, as well as a full-service spa and five meeting rooms.
The 110-room Holiday Inn Express, two blocks from the beach, west of the Sea Colony community’s high-rises, sold for $12 million. The Holiday Inn Express has 110 rooms, as well as a flexible conference space and business center. It is operated by the InterContinental Hotel Group.
The recent sales are the second and third Delaware properties purchased by EOS Investors, joining the Bellmoor Inn & Spa in Rehoboth Beach, which was sold in 2020 for $17.3 million.