JRK Acquires $65M Hotel Portfolio in Austin
- Jan 29, 2020
JRK Property Holdings has acquired a five-property Marriott hotel portfolio in Austin, Texas., for $65 million. JLL handled the transaction on behalf of the seller, an affiliate of RLJ Lodging Trust. JRK was self-represented.
The buyer will be investing more than $40,000 per key on capital improvements for the hotels, which originally opened between 1996 and 2001. Renovations will include complete room and common-area upgrades as well as food and beverage program enhancements.
This purchase marks the first multi-property deal the company made in the hospitality market, where it’s been active for some time now. JRK’s acquisition was funded by the firm’s $350 million fund, its first dedicated to full- and select-service hotels, for value-add and core plus investments. The fund targets transactions of more than $25 million and up to $3 billion for portfolios.
The portfolio includes a Marriott, Courtyard, Residence Inn, SpringHill Suites, and Fairfield Inn & Suites, and totals 602 keys. The adjacent hotels are 5 miles from downtown Austin and 10 miles from the Austin-Bergstrom International Airport.