VIRGINIA BEACH, Va. — The Historic Cavalier Hotel was sold to a real estate firm alongside other Oceanfront hotels.
In addition to the Cavalier, the Oceanfront Marriott and the Embassy Suites were also sold to Wheelock Street Capital LLC, a Connecticut-based real estate investment firm. HEI Hotels & Resorts will manage the properties.
A resolution brought forth by the Cavalier's owners was approved by Virginia Beach's development authority back in May, but the deal was finalized on Monday, according to the company.
"We're proud to invest in such an irreplaceable asset and look forward to becoming part of the Virginia Beach community," the company wrote in a LinkedIn post on Wednesday.
In 2014, the Virginia Beach City Council and the Virginia Beach Development Authority approved $18 million in gap financing for the Cavalier project, the initiative to restore the historic Cavalier hotel properties. In 2017, $6.5 million in gap financing was added for the Embassy Suites.
The Cavalier Hotel first opened back in 1927, serving as a landmark of the Virginia Beach Oceanfront. The hotel was closed for a time, then it reopened in 2018 after a push from city leaders to restore the historic property.
In a report submitted by Gold Key PHR — the resort's developer — to the Virginia Beach City Council back in 2023, the following details were shared:
- The hotel renovation took five years to complete and cost $85 million, which was $35 million over budget.
- After the renovation efforts were completed, the Historic Cavalier Hotel reopened, 81 Cavalier residences were sold, the Marriott Virginia Beach Oceanfront opened, all 35 units of the 42 Ocean luxury condos were sold, and Embassy Suites by Hilton Virginia Beach Oceanfront opened.
- The city’s $18 million investment was recovered by 2021 “in new ‘but-for’ taxes.”
In 2023, the Historic Cavalier Hotel and its two sister hotels were projected to generate $9,520,360 in city tax revenue, according to Gold Key PHR’s report.
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