ATLANTA, Ga.—Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel ownership and management company, has announced it has formed a joint venture with True North Management Group of White Plains, N.Y., to acquire the 282-room Marriott Century Center in Atlanta, Ga., and the 226 two-room suite Hilton Phoenix Suites in Midtown Phoenix, Ariz. HVMG will operate both hotels, bringing its portfolio to 35 operated hotels with 7,572 rooms nationwide. The deal was brokered by Atlanta-based Hunter Hotel Advisors for $50.75 million, inclusive of the hotels’ capital reserve accounts.
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, HVMG president and CEO. “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 percent 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.”
