Recent transactions include RADCO’s hotel division acquiring the American Hotel in Downtown Atlanta; a joint venture purchasing a Hyatt Regency in California; Procaccianti Companies buying a Cape Cod inn; and more.
RADCO acquires American Hotel in Downtown Atlanta
The RADCO Companies (RADCO) has acquired The American Hotel, the historically significant 315-room, full-service hotel in Downtown Atlanta from Legacy Ventures, which has been retained to continue providing management services for the property. Additional terms of the deal were not disclosed.
Opened in 1962 as the American Motor Hotel, the property has a rich history as the first racially integrated hotel in downtown Atlanta and was cited as an important catalyst in the relocation of Major League Baseball’s Braves franchise from Milwaukee to Atlanta in 1966, according to the company. The American Hotel became a fixture of the civil rights movement and hosted meetings of influential leaders such as Martin Luther King Jr., who is now depicted in a mural on the western wall of the property.
The deal marks the third acquisition by RADCO’s new hotel division launched in early 2021 in response to the COVID-19 pandemic’s operational and capital markets disruptions in the hospitality sector. RADCO is actively seeking out hospitality assets that are in line with the company’s overall opportunistic investment strategy, the company reports.
Legacy Ventures acquired the hotel in 2015 and completed a comprehensive $16-million renovation program in 2017, including rebranding the property as The American Hotel, to restore and revitalize the asset in a retro 1960s theme. RADCO plans to build on these upgrades and up-brand the asset to Hilton’s new Tapestry Collection brand, significantly raising RevPAR at the property.
The property is located in the heart of Downtown Atlanta, just a block from the Peachtree Center shopping destination and the city’s central business district. The hotel is across the street from the AmericasMart, a wholesale trade show center, and close to Centennial Olympic Park, the Georgia World Congress Center, State Farm Arena and Mercedes-Benz Stadium.
Trinity, Oaktree acquire Hyatt Regency Indian Wells Resort & Spa
A joint venture among funds managed by Trinity Fund Advisors LLC, an affiliate of Trinity Real Estate Investments LLC, and funds managed by Oaktree Capital Management LP has acquired the Hyatt Regency Indian Wells Resort & Spa, a 530-key hotel located in the Greater Palm Springs, CA, area, one of the top drive-to resort markets in the country. Trinity and Oaktree intend to undertake a multimillion-dollar capital improvement plan to reposition the resort, and Hyatt Corporation will continue to manage Hyatt Regency Indian Wells Resort & Spa under a long-term management agreement. This represents the sixth investment in seven premier assets across six markets totaling more than 4,500 keys that Trinity and Oaktree have made together.
First opened in 1989, the 36-acre Hyatt Regency Indian Wells Resort & Spa features 88,000 sq. ft. of indoor and outdoor event space, four food and beverage outlets, nine outdoor pools and a fitness and spa complex. A renovation in 2020 included upgrades to select guestrooms and meeting spaces, as well as the addition of a waterpark with dueling water slides and a lazy river. Trinity and Oaktree’s capital improvement plan contemplates the complete renovation of all guestrooms, a reimagined food and beverage program and enhanced amenities and guest offerings.
Procaccianti Companies purchases Chatham Wayside Inn on Cape Cod
Procaccianti Companies has acquired The Chatham Wayside Inn in Chatham, MA, in the heart of historic Cape Cod. The 56-room independent property will be managed by Procaccianti’s hospitality management affiliate, TPG Hotels, Resorts & Marinas. CBRE Hotels acted as exclusive advisor to the seller; purchase price and details regarding the transaction will not be disclosed.
The property is comprised of two buildings. The Main Inn includes 24 guestrooms and is home to the 300-seat Wild Goose Tavern, and the second building containing 32 guestrooms. The inn also has approximately 4,000 sq. ft. of functional meeting/event space, an outdoor pool, fitness center and an electric vehicle charging station.
Procaccianti Companies has completed several recent acquisitions in the upscale independent and resort space, including Champlin’s Resort & Marina on Block Island, RI; Danford’s Resort, Marina & Spa in Port Jefferson, NY; and Fisher Inn, Hadley House and Parmer’s Resort in the Florida Keys; as well as multiple upscale boutique hotels in Nantucket, MA, including the Regatta Inn and the Veranda House.
Hunter Hotel Advisors closes sale of Atlanta Residence Inn
Hunter Hotel Advisors has closed another sale in its hometown of Atlanta. Led by SVP Tim Osborne, Hunter brokered the sale of the Residence Inn by Marriott Atlanta Buckhead/Lenox Park to Auro Hotels and an institutional equity partner for an undisclosed amount.
The hotel is within two miles of Lenox Square Mall and Phipps Plaza. The 150-room property sits adjacent to AT&T’s corporate offices.
The Residence Inn benefits from its place in the extended-stay segment. According to a recent report by research consulting firm the Highland Group, demand for extended-stay hotels in the fourth quarter of 2021 outpaced supply by more than five times. In 2020, Buckhead led the Atlanta MSA in RevPAR by nearly 20% in higher-priced properties.
CBRE facilitates sale of The Chancellor’s House
CBRE has arranged the sale of The Chancellor’s House, a 38-room luxury, boutique hotel located in Oxford, MS, to BNA Associates LLC, a Nashville-based real estate development company.
Natalie Castillo, Austin LaPoten and John Lamberson Jr. with CBRE represented the seller, Chancellor House LLC.
Built in 2017, The Chancellor’s House hotel is located one block from The Square in downtown Oxford. The hotel offers two full-service restaurants, a lounge with outdoor patio and more than 2,800 sq. ft. of meeting space. It sits less than one mile from the University of Mississippi and is just south of The University-Oxford Airport.
DSH Hotel Advisors closes sale of Florida Baymont
DSH Hotel Advisors has revealed that Dylan Amin, investment associate, and Dennis Hopper, managing principal, closed on the sale of the Baymont by Wyndham Midway/Tallahassee, FL for an undisclosed price. Amin and Hopper represented the seller, DJK Properties LLC, and the buyer, Lakulesh Inc.
The sale represents one of many recent hotel transactions that DSH Hotel Advisors has brokered throughout the state of Florida. The firm is expecting numerous additional closings in the coming weeks and months—with a heavy concentration in the midscale hotel segment.
“We generated over 20 offers throughout the course of marketing the Baymont for sale,” said Amin. “Buyers from all over the country were interested in the [hotel], which allowed us to create a competitive bidding environment between buyers and ultimately maximize the sale price for the seller. Due to operational inefficiencies and vacant land ready to be developed, the hotel has significant upside potential remaining for the new owner through capital improvements and enhancing property operations. Tallahassee is positioned for significant growth in the upcoming years which made this a unique acquisition opportunity for the first-time buyers.”
Holiday Inn Club Vacations acquires land to develop Myrtle Beach resort
Holiday Inn Club Vacations Incorporated, a national vacation ownership company, earlier this year purchased 16 acres of undeveloped property in Myrtle Beach, SC, from Myrtle Beach Farms Company Inc. Last month, the company finalized its subsequent conveyance of an 11-acre beachfront portion of the property to Myrtle Holiday 1 LLC, who will develop the property into an oceanfront resort for the company. The new resort is expected to open in 2024.
The beachfront property is located across the street from Holiday Inn Club Vacations South Beach Resort. Once the first phase of development is complete, the new resort will feature 152 one-, two-, three- and four-bedroom villas. All villas will include patios and offer ocean views. A portion of the villas will be designated for the Signature Collection, the company’s luxury product.
In addition to direct beach access, the resort will offer amenities such as a beachside activity lawn, multi-level pool, outdoor fire pit with lounge seating, poolside hot tubs, private cabanas, fitness center, Grab ‘n Go marketplace with café, indoor and outdoor dining, poolside bar, indoor and outdoor activity centers and an exclusive Signature Collection lounge.