LWHA Asset Management Services, a hospitality advisory firm, and Meyer Jabara Hotels, a hotel ownership and management group, teamed to operate a portfolio of five hotels in North and South Carolina. LWHA will serve as asset manager, while Meyer Jabara Hotels will oversee day-to-day operations. Meyer Jabara Hotels has equity in this portfolio, with the majority ownership stake being held by NCSC Hospitality Portfolio, a conglomerate of private real estate investors.This will be the first time LWHA and Meyer Jabara will work collaboratively on hotel assets.
"The investors of NCSC Hospitality Portfolio plan to acquire select service hotels in markets that are expanding through population and income growth," Gary Isenberg, president of LWHA Asset Management Services, said in a statement. "The addition of this portfolio will significantly increase the number of properties under contract by LWHA Asset Management Services.
"We connected with Meyer Jabara Hotels because of its directed focus on select service, and of course, because of its stellar reputation in the industry," Isenberg said. "We will work closely with Meyer Jabara Hotels in overseeing the performance of each of these hotels; collectively we are striving for profitability and increasing the asset value of this collection."
The portfolio is comprised of a variety of brands in expanding markets, and consists of the following five properties:
- Fairfield Inn Myrtle Beach North, S.C. (86 Rooms)
- Holiday Inn Express & Suites Wilmington-University Center, N.C. (131 Rooms)
- Holiday Inn Express & Suites Goldsboro, N.C. (92 Rooms)
- Fairfield Inn Charlotte Northlake, N.C. (93 Rooms)
- Comfort Suites Gastonia, N.C. (109 Rooms)
Approximately $5 million will be allocated for property renovations portfoliowide. The infusion of capital is intended to maintain the properties, sustain cash flow and improve the guest experience. The goal is to continue maintaining and expanding the cash flow through renovations, operating efficiencies and market expansion. Ultimately, Isenberg said his client NCSC hopes to grow the portfolio to more than a dozen properties in the next 12 to 24 months.
LWHA and MJH are enthusiastic about the Carolinas as a market, noting that these markets are growing economies with infrastructure and demand generator expansion plans, and a corporate business base. The outlook for this region remains positive.
"These five assets boast consistent cash flow and represent some of the industry's top brands," Justin Jabara, Meyer Jabara Hotels VP of development, said in a statement. "Both the properties and their respective markets are expanding through population and income growth, as the Carolinas continue to be a favorite relocation and retirement destination. Universities, military, medical facilities, conference centers, sporting facilities and manufacturing are also proving to be key demand generators.
"Together, LWHA and Meyer Jabara Hotels are bringing more than 110 years of combined hotel and asset management experience to these properties," Jabara said. "This is an exciting opportunity not just for growing our respective portfolios, but for increasing sales, improving operations and driving revenues for these hotels through renovations, repositioning and expert management. The performance potential for these assets is limitless. We look forward to collaborating with LWHA, and expanding on this relationship in the future."