Joint Venture Buys Southpoint Hotel

JACKSONVILLE, FL-Seeking to expand into the full-service hotel segment, Paramount Hotel Group of Fairfield, NJ has chosen AMC Delancey Group Inc. of Philadelphia as its partner in the acquisition of the five-year-old, 167-room Southpoint Hotel off Interstate 95 at J. Turner Butler Boulevard.

The partners didn’t disclose the purchase price paid to Avista Properties of Orlando. But local hospitality industry brokers familiar with the property tell GlobeSt.com the contract price for the six-story hotel was probably in the replacement range of $90,000 per room or a total $15 million.

The joint venture has closed the hotel and will re-open it later this year after a complete interior and exterior renovation is completed. The partners didn’t disclose the estimated renovations cost but area brokers tell GlobeSt.com the expenses could reach $2 million-plus. Paramount will oversee the renovation and operate the hotel which is being renamed the Radisson Hotel Jacksonville-Butler Boulevard.