Hotel Transaction Activity Reenergized in Charleston
- Aug 14, 2015
Three hotels totaling 248 guest rooms recently changed hands in North Charleston, SC.
A joint venture between Hotel Development Partners, LLC and funds managed by the real estate group of Ares Management, L.P. of Los Angeles acquired the properties for a combined $29 million. According to The Post and Courier, the sellers were affiliates of Columbia-based Gateway Hospitality.
All three hotels are clustered together just 15 minutes away from the city’s historic downtown area and include a Residence Inn and a Fairfield Inn & Suites, both Marriott-flagged lodgings, as well as a Sleep Inn, which belongs to the Choice Hotels brand.
County records indicate that the sale of the properties occurred on July 20. The Residence Inn by Marriott Charleston North/Ashley Phosphate sold for $17 million, the Fairfield Inn & Suites by Marriott Charleston North/Ashley Phosphate sold for $8 million, while the Choice Hotels property sold for $4 million.
Atlanta-based HDP is a joint venture between IRE Capital and Hotel Equities, which has assumed management of the three hotels. As part of their value-add strategy, the new owners are now planning additional renovations to the properties later this year.
This transaction comes on the heels of the acquisition of seven Atlanta hotels by HDP and funds managed by Ares, bringing the partnership’s total number of jointly-owned hotels to ten.
“This portfolio addition gives us three Marriott hotels in Charleston and a total of four in a market that continues to grow, especially in the northern part of the city,” Fred Cerrone, COO of HDP and founder & CEO of Hotel Equities, said in a prepared statement.
HDP also owns the 102-key Fairfield Inn & Suites Charleston Airport, which was purchased in 2012 for $9.4 million.
Photo credits: www.marriott.com