ARLINGTON, Va.—Interstate Hotels & Resorts, along with Waramaug Hospitality, a private investment group focused on acquiring legacy branded assets through the United States, announced today an investment in a premier collection of 10 Marriott branded extended-stay hotels in partnership with Gatehouse Capital, an advisory client of Arch Street Capital Advisors. Gatehouse Capital is a part of the larger Gatehouse Financial Group. Interstate will operate the hotels under a long-term agreement.
The properties, aggregating to 1,103 rooms, are located throughout strategic submarkets of Minneapolis, Milwaukee, and Detroit with three SpringHill Suites by Marriott and seven TownePlace Suites by Marriott. The portfolio includes: the SpringHill Suites Minneapolis West and TownePlace Suites Minneapolis West in St. Louis Park, Minn.; SpringHill Suites Eagan and TownePlace Suites Eagan in Eagan, Minn.; SpringHill Suites Eden Prairie and TownePlace Suites Eden Prairie in Eden Prairie, Minn.; the TownePlace Suites Livonia in Livonia, Minn.; TownePlace Suites Dearborn in Dearborn, Mich.; TownePlace Suites Sterling Heights in Sterling Heights, Mich.; and TownePlace Suites Brookfield in Brookfield, Wis.
“Interstate’s success is due in part to its strategic partnerships,” said Leslie Ng, Interstate’s chief investment officer. “We are delighted to have a leading international investor like Gatehouse Capital as our partner as well as continuing our work with Waramaug, a highly regarded firm in the hospitality sector. With significant renovations, strong corporate lodging market conditions, and highly recognized brands, we are confident we will maximize investment returns.”
“2015 was a very successful year with the addition of 11 assets to our portfolio of select and full service hotels,” said Paul Nussbaum, founder and chairman, Waramaug Hospitality. “Waramaug is poised to find opportunities to enhance and expand our portfolio in markets where we expect to enjoy continued rate and occupancy growth in the foreseeable future.”
Fahed Boodai, executive chairman of Gatehouse Financial Group added, “Gatehouse continues to build on its excellent track record of real estate investment in the US and UK in partnership with best-in-class operators and investors such as Interstate and Waramaug. The portfolio is an excellent addition to the investment portfolio and we are confident the partnership with Interstate and Waramaug will prove to be extremely valuable in maximizing returns.”
The Interstate, Gatehouse, and Waramaug partnership plans to begin a comprehensive renovation of the portfolio including a transformation of the public spaces, guestrooms, and building exteriors. Seven TownePlace Suites hotels, with new lobbies and new and expanded breakfast rooms, will undergo full renovations to guestrooms and corridors, along with enhancements to bathrooms. Two SpringHill Suites are completely renovated and will have additional touches. The SpringHill Suites in Eagan, Minn., will have a complete renovation including all rooms, bathrooms, and public spaces.