District Hospitality Partners, a privately held hospitality investment group that owns properties nationwide, has acquired the Hilton Washington DC/Rockville Hotel and Executive Meeting Center.
The 315-room property backs up to the Twinbrook Metro station, offering guests access to downtown Washington DC, Capital One Arena, Union Station DC and the DC airports. The hotel also sits at the confluence of major demand generators for its rooms and meeting space that include U.S. and state government institutions, including the National Institutes of Health, U.S. Department of Energy-Maryland, National Institute of Standards and Technology, the U.S. Food and Drug Administration; pharmaceutical and health companies, including AstraZeneca, Kaiser Permanente, Emergent BioSolutions and Human Genome Sciences Inc.; and defense-related companies, including Lockheed Martin, Westat Inc. and Hughes Network Systems LLC. Directly adjacent to the hotel is 450,000 sq. ft. of retail space and nearly 1,000 high-end residential units currently being built or in planning stages.
“The Hilton Washington DC/Rockville is a key addition to our portfolio as we continue to accelerate our acquisition pace,” said Fred Malek, CEO, District Hospitality Partners. “The property is located in a growing market with high barriers to entry and benefits from the balanced strength of its group and transient customers. With the property’s strong and balanced cash flows, the primary Hilton group option in the market and the low basis and high capitalization rate, this acquisition represents our continued commitment to growing in top-tier markets with strong economic fundamentals and high-demand drivers. We plan to update the property by renovating the guestrooms, bathrooms and corridors. These improvements are in addition to the previous owner’s recently completed renovation of the meeting space and common areas, including the lobby and restaurant.”
The property accommodates business and lifecycle events with nearly 40,000 sq. ft. of event space encompassing 26 rooms, including one of the area’s largest ballrooms at 10,000 sq. ft, and on-site catering. Additional amenities include a fitness center, business center, restaurant bar and café.