NEW YORK—Lightstone has acquired two hotel properties in the tech corridor of Austin, TX: the Fairfield Inn & Suites Austin NW Research Blvd. and the Staybridge Suites Austin. Totaling $22 million, the investment by Lightstone’s Value Plus REIT III (LVPR III) is intended to position the company to capitalize on demand in Austin, which was named America’s fastest-growing city in 2016 by Forbes Magazine.
Located close to downtown Austin, the properties are in close proximity to a number of key demand drivers nearby the tech corridor, including the Austin Convention Center, the University of Texas at Austin and its 100,000-plus-capacity Darrell K Royal-Texas Memorial Stadium, the LBJ Presidential Library and the Austin-Bergstrom International Airport.
According to the company, business-related travel in the tech corridor is expected to continue rising with the anticipated late 2016 completion of what is expected to become Apple’s second-largest office campus, with seven buildings housing 7,000 employees. In addition to Apple, IBM, eBay, PayPal and Texas Instruments are among the tech companies with offices located near Lightstone’s newly acquired properties.
Opened in June 2014, the Fairfield Inn & Suites Austin has 84 guestrooms and suites with a living room-style lobby and additional social spaces. Lightstone intends to initiate an aggressive sales and marketing campaign to help the asset gain market awareness and attract local corporate clients and travel departments.
The Staybridge Suites Austin, opened in April 2009, has 80 suites and amenities, including high-speed internet, fully equipped kitchens, a full-service business center and an outdoor pool. The property also has an event space large enough to accommodate 40 people. Lightstone said it plans to improve revenue management discipline and modernize the interior appearance to better compete with newer hotels that are currently commanding higher average daily rates.