As travel resumes and occupancy improves, companies are buying and selling hotels across the country. Here are three recent transactions.
Washington, D.C.
Commercial real estate investment, development and lending platform Driftwood Capital has acquired the Hyatt Regency Fairfax,a 316-room hotel in the Washington, D.C., submarket of Fairfax, Va., for an undisclosed price. The hotel is set to be rebranded to a Hilton flag and will be managed by Driftwood Capital’s sister company, Driftwood Hospitality Management.
“This is a well-located asset that we were able to acquire at a great basis below its replacement cost, in one of the largest commercial office markets in the country, home to over 26 million square feet of office space dominated by government agencies, defense contractors and technology companies,” said Johannah Rodriguez, managing director of acquisitions with Driftwood Capital. “Further supporting this asset’s long-term growth outlook is the lack of new lodging supply in this submarket. The only new hotels in this property’s competitive subset are located over 10 miles away.”
“Having completed an extensive $14 million renovation in 2016, this hotel presented Driftwood Capital and its investors a unique value-add opportunity to realize significant gains in top-line performance once a new management team is in place that capitalizes on the hotel’s superior location and physical condition,” said Carlos Rodriguez Sr., CEO of Driftwood Capital.
The Hyatt Regency Fairfax was built in 1989 and includes a fitness center, an indoor pool with a whirlpool, a full-service restaurant, more than 9,000 square feet of meeting space that can host up to 600 guests and 2,420 square feet of prefunction space. The property is close to Washington Dulles Airport and US Route 50, which offers access to the entire D.C. metro area
With this acquisition, Driftwood Capital has 21 full-service hotels and seven new ground-up hotel developments in its portfolio.
Texas
Wichita, Kan.-based Lodging Advisory Group has purchased the 92-room Candlewood Suites in Plano, Texas, from B&T Hospitality Management, based in Idaho Falls, Idaho.
The property is within the Telecom Corridor and is close to several dining, retail and entertainment outlets. More than 5,400 companies are headquartered in the area, including software, financial services, telecommunications, semiconductor, defense and aerospace and research-and-development firms.
“We are excited to add the Candlewood Suites Dallas Plano East to our portfolio and believe the asset is well positioned to capitalize on the economic growth in North Dallas,” said Dan Weber, CEO of Lodging Advisory Group. “It was a great experience working with Eric Guerrero and the team at HVS to get the deal closed. Navigating a transaction during the COVID challenges was not easy, but they did an excellent job addressing several deal issues during the transaction. We are actively looking for further opportunities to grow our extended-stay portfolio, and look forward to working with HVS again.”
HVS Brokerage & Advisory team members Eric Guerrero, James Rebullida, and Fadi Rawashdeh participated in the transaction. “This hotel received tremendous interest from the market given the attractive basis and its coveted extended-stay product offering,” said Guerrero, managing director and head, brokerage & advisory of HVS. “In addition to COVID, there were some deal challenges that included declining performance in the submarket and low hotel cash flow, so it was important to select a strong buyer who had the ability to get the deal closed. Lodging Advisory Group was a good fit, and we are happy with this result. Our team looks forward to working with B&T Hospitality Management as it continues to dispose of noncore assets.”
North Carolina
Raines has acquired the Waynesville Inn Golf Resort & Spa, close to downtown Waynesville, N.C. The property, which will be owned, developed and operated by Raines, joins the firm’s boutique hotel division, Woven by Raines, and expands its existing footprint in Western North Carolina, where it also manages The Foundry Hotel Asheville, Curio Collection by Hilton in nearby Asheville, N.C. The property will also join the Trademark Collection by Wyndham.
The 165-acre property includes the historic 111-room hotel as well as a 27-hole golf course, originally designed by golf architect Donald Ross. Raines managing partners Grey Raines and David Tart plan to oversee a renovation that will take approximately 16-24 months to complete. Work will begin on the hotel and golf club this summer and the property will remain open and operational for the duration of the project. Raines’ plans include a full restoration of the hotel and golf course as well as new construction additions, including practice facilities, golf cottages and restaurants.