Ascendant Capital Partners has acquired an eight-hotel portfolio from Coastal Hospitality Associates LLC. It comprises 965 predominantly beachfront rooms across six hotels in Virginia Beach, VA, and two hotels in the Outer Banks, NC.
The portfolio was assembled over decades by the late Thomas J. Lyons Jr., founder of Coastal Hospitality. Beginning with the acquisition of a 12-room inn in 1968, he developed nearly 40 hotels across Virginia and North Carolina. Ascendant will seek to implement targeted capital and operational enhancements across the portfolio, including executing select guest-facing improvements to strengthen asset performance and guest experience. In conjunction with the closing, Schulte Hospitality Group will assume operations of the portfolio.
“This transaction reflects the continued execution of our differentiated hospitality strategy, which is focused on high-quality assets in dynamic, supply-constrained markets with resilient demand drivers,” said Alex Halpern, cofounder/chief investment officer, Ascendant. “The portfolio offers a unique concentration of beachfront properties in established Southeastern destinations, supported by a diverse mix of tourism, government and corporate demand. Thomas J. Lyons Jr. spent decades assembling and developing one of the premier hospitality portfolios in Virginia and the Outer Banks, and we are honored to continue that legacy while investing in the long-term success of these exceptional properties.”
The portfolio consists of eight select-service hotels, five of which have been extensively renovated since 2022: SpringHill Suites by Marriott Virginia Beach Oceanfront, Residence Inn by Marriott Virginia Beach Town Center, Residence Inn by Marriott Virginia Beach Oceanfront, Fairfield by Marriott Inn & Suites Virginia Beach Oceanfront, Holiday Inn VA Beach-Oceanside, Holiday Inn Express & Suites VA Beach Oceanfront, Holiday Inn Express Nags Head Oceanfront and Holiday Inn Express Kitty Hawk – Outer Banks.
Seven of the eight properties are beachfront, with most rooms offering direct ocean views and outdoor balconies, while the remaining asset is a centrally located town center hotel.
“We have built and operated this portfolio with an unwavering commitment to delivering exceptional guest experiences, and we are proud of the operational success and renovations we’ve achieved under our ownership,” said Christopher Brown, president, Coastal Hospitality. “Ascendant brings deep expertise in hospitality, and we are confident their team will build on the strong foundation that has been established across the portfolio.”
Darryl Schulte, CEO, SHG, added, “We are excited to deepen our partnership with Ascendant and bring our operational expertise to assets with strong fundamentals and significant upside potential. Our team will focus on driving performance through disciplined execution, enhanced commercial strategies and delivering a high-quality experience for guests across each of these properties.”
CBRE Hotels served as sell-side advisor to Coastal Hospitality, and CBRE Debt & Structured Finance served as financing advisor to Ascendant.
