Through its investment vehicle, GP Invitation Fund III, LP, Crescent Real Estate acquired the Home2 Suites by Hilton Alpharetta, a 107-key hotel operated under a franchise agreement with Hilton. JLL's Hotels and Hospitality group arranged the sale on behalf of the seller, Ram Hotels. Other terms were not disclosed.
Opening in 2014, the 86-acre Avalon development created a renowned “Live-Work-Play” community that has become the central hub of Alpharetta. Comprised of more than 570,000 square feet of retail space, over 600,000 square feet of Class A office space, and 600 single and multi-family residences, Avalon pairs the sophistication of urban living with the quality-of-life advantages of a suburban locale.
The all-suite, extended-stay Home2 Suites by Hilton has variable guestroom configurations for the cost-conscious traveler. Catering to both short-term and long-term guests, rooms feature fully equipped kitchens in spacious studios and suites. Due to its recent delivery in 2019, the hotel is one of the newest select-service hotels in the submarket and requires minimal capital expenditure in the near term.
“The addition of the Home2 Suites by Hilton Alpharetta to our expanding premium select-service portfolio is a wonderful way to conclude the year," Crescent Co-CEO Jason Anderson said in a statement. "Our industry was presented with several challenges throughout the course of 2023, but I am pleased with Crescent’s navigation through a difficult interest rate environment to complete another successful transaction. One of Crescent’s core hospitality strategies is the growth of an exceptional select-service portfolio, and the acquisition of the Home2 Suites by Hilton Alpharetta enhances our current collection of assets.”
“The Home2 Suites by Hilton brand is well-respected across the select-service segment, and we look forward to capitalizing on an asset with minimal capital requirements in a submarket that we are familiar with,” Anderson said. “With the hotel at Avalon in our portfolio, we have valuable insight and knowledge on the overall Alpharetta market. The prospect of owning two assets that are direct beneficiaries of Avalon and its substantial demand generation was an opportunity that we did not want to miss out on."
Crescent has engaged HEI Hotels & Resorts for management.