Atlanta & Phoenix Hotels Change Hands for $51M
- Aug 09, 2016
Atlanta and Phoenix—Hospitality Ventures Management Group, an Atlanta-based, private hotel ownership and management company, has formed a joint venture with True North Management Group of White Plains, N.Y., to acquire the 282-key Marriott Century Center/Emory Area in Atlanta, and the 226-key Hilton Phoenix Suites in Midtown Phoenix, Ariz. The sale price was $50.8 million.
HVMG will operate both hotels, bringing its portfolio to 35 operated hotels with 7,572 rooms nationwide. The deal was brokered by Atlanta-based Hunter Hotel Advisors.
Each hotel will undergo a major renovation program of approximately $15 million to upgrade property exteriors, public space, back-of-house areas and guest rooms. HVMG will oversee both renovations, which are expected to begin in 2017.
“We continue to work with best-in-class partners to pursue underperforming hotels that can benefit from improved management, better operating margins, an infusion of capital investments and repositioning,” said Robert Cole, HVMG president & CEO. “Our management team has extensive repositioning experience and an aggressive, yet targeted, approach to maximize value creation within the full-service segment, which now accounts for more than 90 percent of our total portfolio’s revenue.
“With the addition of this joint venture, we have added three upscale hotels and resorts within the last three weeks to our rapidly growing, national hotel portfolio,” added Cole. “With approaching debt maturities as well as franchise license agreement expirations, a substantial number of hotels will likely change hands in the near future, creating additional acquisition and third-party management opportunities for proven operators. HVMG has experience in virtually all segments of the hospitality industry, from select-service to premium-branded upscale and independent boutique hotels and resorts, allowing us to move quickly and be successful in the various categories.”
Earlier this month, HVMG acquired two hotels in downtown Winston-Salem, N.C., marking the company’s entry into the market.
Photo courtesy of Mariott and Hilton