Emblematic Midtown Hotel Changes Hands for $61M
- Apr 04, 2014
Georgian Terrace Hotel has a new owner. SoTHERLY Hotels Inc. paid $61 million for the asset. The price includes an adjacent 698-space parking structure and a 0.6-acre development parcel.
As a self-managed and self-administered lodging REIT headquartered in Williamsburg, Va., SoTHERLY Hotels Inc. is focused on the acquisition, renovation, rebranding and repositioning of full-service hotels in the Southern U.S. At the moment, the company has a portfolio of 2,698 rooms in 12 properties operating under the Hilton Worldwide, InterContinental Hotels Group and Starwood Hotels and Resorts brands. Eleven of the assets are wholly-owned and the Company also has a 25 percent interest in the Crowne Plaza Hollywood Beach Resort. As a part of the transaction, the SoTHERLY closed on a $19 million loan with Richmond Hill Partners, LP and Essex Equity Joint Investment Vehicle, LLC and a $41.5 million loan with Bank of the Ozarks collateralized by a first mortgage on the property.
The Georgian Terrace Hotel or the “Grand Dame of Atlanta”, as it is often called, is a 326-room independent full-service hotel built in 1911. It sits in one of Atlanta’s best performing areas in terms of hospitality, at the corner of Peachtree Street with Ponce de Leon Street, along Atlanta’s Midtown Mile, facing the Fox Theatre. It is a member of Preferred Hotels Group, Historic Hotels of America, and is listed on the National Register of Historic Places. It also takes pride in the largest guest rooms in the market averaging over 800 square feet and over 16,000 square feet of flexible meeting space, respectively, as well as three food and beverage outlets. More than $15 million has been invested in modernizing the guest rooms and public spaces over the past five years. Georgian Terrace has undergone a major facelift before, in 1991, when the new tower was added.
The Hotel will be managed by Chesapeake Hospitality in the future.
Photo credits: Georgian Terrace Hotel