A Glen Allen hotel was recently swept up by a New York-based REIT in a massive portfolio transaction.
The Hyatt Place Richmond Innsbrook hotel at 4100 Cox Road was purchased by American Realty Capital Hospitality Trust in mid-March for $9.1 million. The deal was part of the company’s $1.8 billion purchase of the Equity Inns Lodging Portfolio.
The 124-room hotel was previously owned by affiliates of the Whitehall Real Estate Funds, which was sponsored by Goldman Sachs.
The Equity Inns Lodging Portfolio consists of 116 hotels totaling 13,744 rooms in 31 states, according to a news release.
The Hyatt Hotel was American Realty’s first purchase in the Richmond market, Vice President of Asset Management Mark Fowler said. The portfolio included another hotel in Norfolk.
“We’re very excited to be in Richmond,” Fowler said. “This asset fits exactly our investment criteria, and we’re looking for more of the same.”
The company also has joint-venture interests in two other Virginia hotels, one in Blacksburg and another in Virginia Beach.
The Hyatt Place hotel will undergo renovations within the next 12 months, Fowler said, in order to keep up with hotel brand requirements. Fowler said it is too early to say how much the renovations will cost.
“Once our renovations are done in 12 months, I think we’ll be very pleased with this asset, and it will be a plus to this market,” he said.
The Hyatt had been part of the Equity Inns portfolio since 1997. The five-story building sits on 3 acres in Innsbrook.
A publicly registered, non-traded REIT, American Realty Capital Hospitality Trust went live in 2014. It is targeted at owning $4 billion in assets, and with this most recent acquisition, it is halfway to that goal.