WASHINGTON—Capstone Development, LLC, has completed the acquisition of 11 hotels representing 1,516 rooms. The portfolio includes Courtyard by Marriott, Hampton Inn, Hilton Garden Inn and Homewood Suites-branded properties located in major markets, including Atlanta, Charlotte, Chicago, Houston, Phoenix, Raleigh and San Antonio.
The hotels were acquired from a private institutional owner and will be operated by McKibbon Hotel Management.
“This transaction represents an outstanding opportunity to acquire a portfolio of high-quality, premium-branded hotels in strong markets with multiple sources of lodging demand,” stated Norman Jenkins, president of Capstone Development. “We are confident this acquisition will build upon our strong track record of delivering superior, risk-adjusted returns to our investors”.
Darren Linnartz, managing partner of Capstone Development, added, “These properties are outstanding additions to our portfolio and fit well with our core-plus investment strategy of acquiring well-located hotel properties with in-place operating cash flow that also offer value-add opportunities through selective renovation and focused asset management.”
Capstone Development also expects to begin construction on a dual-branded Marriott product featuring a 504-room Courtyard by Marriott and Residence Inn by Marriott located in downtown Washington.
Capstone is the developer of the 1,175-room Marriott Marquis, which opened here a year ago, and was recognized as development deal of the year during the 2015 Americas Lodging Investment Summit (ALIS).