Hospitality Ventures Grabs Underperforming Hotel in Atlanta
- Mar 31, 2015
Keith Loria, Contributing Editor
Hospitality Ventures Management Group has acquired a joint venture interest in Embassy Suites Atlanta-Galleria, a 261-room hotel situated in northwest Atlanta’s Galleria district.
“We saw the hotel as a true value add play due to its excellent central location in the Galleria market, home to the new Atlanta Braves Stadium, and was underperforming due to a lack of historical capital investment,” Mary Beth Cutshall, HVMG’s senior vice president, acquisitions & business development, told Commercial Property Executive. “The property is in a strong market and was below replacement cost. The metrics and upside were compelling.”
The hotel is within walking distance of the Cobb Galleria Centre, Cobb Energy Performing Arts Centre and Atlanta Galleria Office Park, and is also located nearby businesses such as Home Depot, Coca-Cola, IBM, Lockheed and Travelport.
According to Cutshall, the company is investing significant capital into the property to renovate the exterior, lobby area, meeting space, and guest rooms.
HVMG also manages the Embassy Suites Atlanta-Galleria. To date, HVMG’s managed hotel portfolio consists of 42 hotels in 16 states nationwide, totaling 8,060 rooms. The acquisition is its fifth Embassy Suites purchase and 20th Hilton branded hotel.
“HVMG has a long historic track record of acquiring underperforming hotels, investing substantial capital into renovations, and delivering excellence in operation which in turn creates significant investor value creation,” Cutshall said. “The Galleria market is one of the strongest performing markets in metro Atlanta and is forecast to continue especially considering the new Braves Stadium under construction along with the multiple of new development spurred by it.”
In 2014, HVMG achieved a record year in terms of operating results, achieving 10 percent same-store RevPAR growth and early company metrics indicate that 2015 will be another banner year.