UPDATE: Knutsford Court sold to Novamed

Knutsford Court Hotel in New Kingston has been acquired by Novamed Properties, which plans to take the hotel off the market and transform the property into a commercial hub.

Kevin Donaldson, a partner in the Novamed investment group, said the deal had already been sealed.

The hotel, which was one of the more popular spots for short stays, special events and conferences prior to the onset of the pandemic, was held by Kevin Hendrickson under the Courtleigh Hospitality Group. His other holdings include Kingston’s most popular meeting hotel, the Jamaica Pegasus, Courtleigh Hotel & Suites and the former Wyndham that Hendrickson acquired several years ago but is yet to complete its refurbishing.

The latter three properties sit in a connected row on Knutsford Boulevard in New Kingston.

Hendrickson, who confirmed the sale on Thursday, now is now looking to refocus on the Wyndham transformation and expansion, a project now expected to be completed by the spring of 2024.

Knutsford Court Hotel, which comprises 153 rooms, sits on a property that is less than four acres, said Donaldson. The hotel is accessible from both Chelsea Avenue and Ruthven Road, with parking available on both sides. It is one of the very few remaining New Kingston properties with a large contiguous vacant lot that was used for spillover parking for the hotel when it hosted conferences and other special events.

Novamed is a fairly new investment outfit, with Donaldson and architect Kirk-Anthony Hamilton as general partners, and Dr David Walcott as managing partner. The trio has been operating mainly under the radar since Donaldson joined them in 2020 after parting company with Sagicor Investments Jamaica Limited, which he ran as the CEO.

Knutsford Court is the second deal involving Novamed in recent weeks. The investment company is also part of another consortium negotiating to acquire the Medical Associates Hospital, an adjacent property that lies just south of the hotel.

When the Financial Gleaner checked with the booking service of the Courtleigh Hospitality Group, we were advised that the hotel is not operating at present.

Walcott says that as new owners, they will be changing the use of the property. “It will not be a hotel,” he said emphatically.

“This is a one-of-a-kind location that connects Half-Way Tree through Ruthven Road, and New Kingston through Chelsea Avenue. It will be a place where businesses, individuals and retail can come together and operate in a secure environment,” Donaldson adds.

The precise cost of the transaction was not disclosed but the price tag for the purchase of the property, plus closing and renovation costs was disclosed on Friday as amounting to US$40 million.

Donaldson says the acquisition was backed by a consortium of financiers and that his own company, Roots Financial Group, acted as dealmaker.

“It is a sizeable investment. It indicates our commitment to development,” he said. “We want to enhance value across the region through healthcare and providing solutions to businesses, whether through advisory services or the provision of unique spaces for them to operate.”

Walcott said that by year end, the plans for the new complex would start taking shape, adding that the features of the complex would be inspired by his own travels and associations over the years.

“The overall suite of initiatives will be something that Jamaica and, indeed, the Caribbean has never seen before,” he said.

He added that there are possible synergies to be explored from the Medical Associates Hospital and hotel, saying there are definite possibilities where the contiguous properties can benefit from the provision of healthcare services and the promotion of healthy lifestyle.

Ownership of Knutsford Court, formerly known as Sutton Place Hotel, was last transferred at a cost of $12 million to Knutsford Court Hotel Limited in September 2002.

Hendrickson told the Financial Gleaner that when he took over the property, he did extensive renovations, added amenities and repurposed the unused basement into a conference facility with three caucus rooms.

“They only had a small spiral stairway that, ironically, was in the lobby to get downstairs. We opened it up, got more light in. We then added kitchens, the cold rooms, pantries, and so on, and cut it into small rooms along the lines that we thought the public wanted,” the hotelier said.

The sale to Novamed is expected to close in three months.

neville.graham@gleanerjm.com

UPDATE: This story has been updated to reflect new information on the combined cost of acquisition and capital expenditure on the property's transformation.