Mackinac Island's Grand Hotel To Be Sold To Equity Firm

KSL Capital Partners is buying the historic hotel.

WWJ News
September 10, 2019 - 4:48 pm

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MACKINAC ISLAND, Mich. (WWJ) -- The historic Grand Hotel on Mackinac Island is set to be sold.

After more than 85 years of being owned by the Musser family, the iconic resort is being sold to KSL Capital Partners, LLC.

The Grand Hotel, which features 397 rooms and the world's largest porch at 660 feet, is a National Historic Landmark that overlooks the Straits of Mackinac and the Mackinac Bridge.

The sale is expected to be finalized within the next month. Terms of the deal will not be disclosed, officials said.

Dan Musser III, the current chairman of the hotel, will remain in that position during the transition to the new owners.

"It has truly been an honor and a privilege for my family to serve as steward of this incredible Michigan landmark for nearly nine decades. This is a role we have not taken lightly, nor was this decision to transfer ownership to KSL," Musser said in a statement. "KSL is a seasoned investor in travel and leisure businesses, with a depth of resources and capabilities to provide exceptional service. KSL has owned and operated some of the most prestigious destinations in the world, and we are pleased that they will help preserve the history and heritage of Grand Hotel."

The Grand Hotel has hosted the Mackinac Policy Conference for 39 years and the Detroit Regional Chamber has released a statement saying they expect the tradition to continue. Open from early May to late October each year, the hotel is celebrating its 133rd season of operation this season.

KSL is a private equity firm that specializes in hospitality locations across the country and in Europe.

"KSL understands the importance of Grand Hotel to Mackinac Island, the State of Michigan and beyond, as well as its history, charm and traditions. It is both a privilege and a great responsibility to take over ownership," said Michael Mohapp, a Principal of KSL. "We are grateful for the trust that the Musser family has placed upon us, and for Dan’s continued guidance that will help ensure that Grand Hotel remains a driving force in drawing visitors to Mackinac Island as it has for generations."

Pivot Hotels & Resorts, the lifestyle and luxury operating division of Davidson Hotels & Resorts, will be engaged to manage the property for KSL.