ATLANTA—Hospitality Ventures Management Group (HVMG), a private hotel ownership and management company based here, has formed a joint venture with True North Management Group of White Plains, NY, to acquire the 282-room Marriott Century Center here, and the 226-two-room suite Hilton Phoenix Suites in Midtown Phoenix.
HVMG will operate both hotels, bringing its portfolio to 35 operated hotels with 7,572 rooms nationwide. The deal was brokered by Hunter Hotel Advisors for $50.75M, inclusive of the hotels’ capital reserve accounts, according to the company.
Each hotel will undergo a major renovation program of approximately $15 million to upgrade property exteriors, public space, back-of-house areas and guestrooms. HVMG will oversee both renovations, which are expected to begin in 2017.
“We continue to work with best-in-class partners to pursue underperforming hotels that can benefit from improved management, better operating margins, an infusion of capital investments and repositioning,” said Robert S. Cole, president and CEO, HVMG. “Our management team has extensive repositioning experience and an aggressive, yet targeted, approach to maximize value creation within the full-service segment, which now accounts for more than 90% of our total portfolio’s revenue.
“With the addition of this joint venture, we have added three upscale hotels and resorts within the last three weeks to our rapidly growing, national hotel portfolio,” Cole added. “With approaching debt maturities as well as franchise license agreement expirations, a substantial number of hotels will likely change hands in the near future, creating additional acquisition and third-party management opportunities for proven operators. HVMG has experience in virtually all segments of the hospitality industry, from select-service to premium-branded upscale and independent boutique hotels and resorts, allowing us to move quickly and be successful in the various categories.”
Located off I-85, the Marriott Century Center/Emory Area is a short distance from the downtown area and accessible to Brookhaven, Atlantic Station, Georgia Tech, Buckhead and the CDC. Property highlights include Marriott’s communal space, The Greatroom, which offers complimentary WiFi; 25,000-sq.-ft. event and business meeting space for up to 600 guests; state-of-the-art fitness center; and outdoor pool.
Adjacent to the Metro Light Rail, the Hilton Phoenix Suites is located in the Midtown district, a short distance from Chase Field, home of the Arizona Diamondbacks, and Phoenix Sky Harbor International Airport. Spacious two-room suites include a separate living room, an expansive work area and a refrigerator and microwave, while conference suites provide a meeting table that seats up to eight people.
The atrium lobby is shrouded with greenery, ponds, fountains and an atrium lounge surrounded by five large screen TVs and billiard tables. American fare is served at the Great American Grille. Additional amenities include a fitness center, indoor pool and whirlpool, a 24-hour business center and meeting space that can host up to 100 people.
“Following their upgrades, both hotels will offer guests ‘like-new’ facilities, providing a significant competitive advantage,” Cole noted. “Combined with our proven track record in enhancing operating margins and increasing revenue soon after transition, we believe these hotels quickly will become market leaders.”