Virtua Partners completes merger with Hotel Equities

The exterior of the Fairfield Inn & Suites Colorado Springs North/Air Force Academy
Last year, Virtua Partners secured $7.2 million in acquisition financing for the purchase of the Fairfield Inn & Suites Colorado Springs North/Air Force Academy. Photo credit: Hotel Equities

Private equity firm Virtua Partners completed its merger with Atlanta-based hotel operator Hotel Equities December 30. The companies first unveiled a strategic alliance in September 2018, when Virtua Partners revealed plans to make a series of investments totaling more than $500 million into Hotel Equities’ hospitality platform.

“Having a capital arm alongside Hotel Equities allows our firm to be more well-rounded as it relates to acquisitions, potential mergers and scaling our growth,” Joe Reardon, chief development officer at Hotel Equities, said in a statement. “Our current owners have yet another resource within HE for restructures, mezzanine debt and joint-venture deals, which strengthens our partnerships within the hotel owner community.”

In 2019, Virtua Partners raised more than $341 million, a significant portion of which came from the firm’s hospitality and Opportunity Zone strategic initiatives. This total included permanent loans, land loans, construction and bridge loans and preferred equity placement. 

Virtua Partners and its affiliates cover the property development lifecycle, from acquisition and ground-up development to stabilization and recapitalization. Its portfolio includes properties across the country with a focus on Sun Belt states like Texas, Arizona, Florida, Georgia and North Carolina.

As of June 30, Hotel Equities operated 131 properties and 14,640 guestrooms in the United States.