NEW YORK—Lightstone Value Plus Real Estate Investment Trust (LVPR) announced the acquisition of two Marriott-branded hotels in Baton Rouge, Louisiana for $15.6 million.
The properties acquired are the Courtyard by Marriott and Residence Inn by Marriott, both in Baton Rouge. The hotels have a total of 229 keys.
“The acquisition contains two well-located premium franchise hotels that were acquired at a substantial discount to replacement cost,” said David Lichtenstein, chairman and CEO of LVPR. “Both hotels have a diversified base of business and leisure travelers and are representative of The Lightstone Group’s ability to identify attractive investment opportunities.”
Lichtenstein added that Lightstone’s timing on the deal was advantageous. The company had been in discussions since last year and locked in the purchase price months ago, before market prices started to rise. “It’s another example of Lightstone making the right move at precisely the right time,” he said.
Lightstone will implement a property improvement plan geared to position each property to capitalize on the improving market recovery. LVPR is a non-traded REIT sponsored by The Lightstone Group, which is also headed by Lichtenstein. The properties will be placed under new management, which will be overseen by Lightstone’s hospitality division.
The 121-room Courtyard by Marriott underwent a $3.1 million renovation in 2010 that included an upgrade of the guestrooms and corridors and conversion of the lobby to Marriott’s new Refreshing Business Concept.
The 108-room Residence Inn by Marriott will undergo a full renovation. Anticipated improvements include replacement of soft goods, upgrades to the guestrooms, meeting rooms and lobby area, and new signage.