JRK Acquires $65M Hotel Portfolio in Austin

The L.A.-based firm will be investing more than $24 million in room and common-area upgrades.
Austin Marriott South. Image courtesy of JRK Property Holdings

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.