Combined Sale of Six Minnesota North Shore Resorts Worth Millions

Six hotel properties from Duluth to Grand Marais are changing hands in a large real estate deal that was
announced this week. The hotels include: East Bay Suites in Grand Marais; the Caribou Highlands in
Lutsen; Beacon Pointe in Duluth; and three resorts in Two Harbors – Breezy Pointe Cabins, Grand
Superior Lodge, and Larsmont Cottages. The North Shore is a popular vacation area for many
Minnesotans because it serves as an affordable and convenient escape from the city, without being too far
away. The properties have strong numbers in both good and bad economies due to the vast array of
activities available around the North Shore.

The current owner of the properties, Odyssey Resorts, had owned the properties for more than four
decades. Odyssey Resorts’ founder and chief executive, Bob Ryan, hadn’t been planning on selling all six
properties. But when Blackburn Investment Management, partnered with Madison Hospitality Group,
approached Ryan with an offer on Caribou Highlands, Ryan decided it was a good time to sell, and the
deal quickly turned into a sale of all six properties.

The sale of the six properties is estimated to be worth tens of millions, however the terms of the deal have
not been disclosed yet. Caribou Highlands was on the market for $6 million and Superior Shores was on
the market for $17.5 million. Bob Ryan believes that Blackburn Investment Management, with the help
and experience of Madison Hospitality Group, will continue to nurture and grow these properties. Ryan
will stay on with Blackburn and Madison Hospitality for 18 months post-close to help with the transition
between owners.

Source: http://www.startribune.com/latest-north-shore-resort-deal-worth-millions/510540572/