The Cavalier Resort complex, which includes the Historic Cavalier Hotel, was sold this week to the Connecticut firm Wheelock Street Capital.
The sale by an ownership group including local developer Bruce Thompson of Gold Key PHR had been anticipated over the past month after city officials adjusted a financing agreement to accommodate a potential new owner.
The deal closed on Monday, according to Doug Henkel, executive vice president of CBRE Hotels, who brokered it. He declined to discuss the price. The new owners are working with HEI Hotels & Resorts, which will manage the resort complex.
“Everybody should be secure that the property will be run to the highest level of standards and continue to improve under the stewardship of Wheelock Street Capital,” Henkel said.
Thompson could not be reached Wednesday.
“While numerous parties have approached us about acquiring The Cavalier Resort, Wheelock Street Capital was the first with a demonstrated track record of financial acumen and asset stewardship to preserve and enhance these assets,” he said in a statement published by the trade publication Hotel Business on Tuesday.
The Historic Cavalier Hotel is nearly a century old and reopened in 2018 after a $85 million renovation through a public-private partnership.
Redevelopment efforts at the overall complex were valued at $440 million in 2023. The resort now includes the Historic Cavalier Hotel and Beach Club, the Oceanfront Marriott and the Embassy Suites, as well as restaurants and amenities.
Tim Hodes, managing director with Wheelock, told Hotel Business the owners “look forward to becoming part of the Virginia Beach community and continuing to steward and build upon the outstanding resort that Gold Key developed.”
