Piedmont and Alex. Brown Realty to Acquire Atlanta Doubletree
$1.6 mil Improvement Plans Includes Conversion to a Full Service Doubletree
BALTIMORE, MD, November 3, 2006. Alex. Brown Realty, Inc. (ABR), a national real estate investment company, has entered into a joint venture with Piedmont Hospitality to acquire the Atlanta Airport Doubletree Club Hotel, a 220 room hotel adjacent to the Hartsfield-Jackson Atlanta International Airport. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity investment of $6.875 million to the venture. Equity capital was arranged by Emi Iskandar of HVS Capital Corporation.
The hotel, located immediately north of Atlanta's airport in a mature and built-out area that presents significant barriers to new hotel construction, is well-positioned to meet the growing demand for hotel rooms generated by the airport's ongoing expansion.
The hotel has operated as a limited-service Doubletree Club Hotel since 1998. The property will be converted to a full-service Doubletree Hotel, and a $1.6 million improvement plan for the property will be implemented over the next 18 months. "The conversion is a great opportunity to add value to a well-located hospitality asset," commented Peter Bancroft, ABR's senior vice president. "Raising service levels will elevate the profile of the hotel and position the property to compete more effectively against its competitive set."
This is the first joint venture between ABR and Piedmont. "We're pleased to work with Piedmont," commented John Prugh, ABR's president and CEO. "Piedmont has managed the hotel since 2002 and they bring extensive industry experience to the relationship - - a key factor given the operational risks associated with investments in the hospitality sector." Robert Baldwin, Piedmont's president and CEO, continued, "This is a terrific investment opportunity for our partnership - - our team looks forward to working with ABR to achieve superior returns for our investors and to maximize the value of this asset."
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