GlobeSt.com UPDATE: Procaccianti Group Closes on $300M Hotel Portfolio

PROVIDENCE, RI-The Procaccianti Group has closed on its $300-million hotel portfolio acquisition–the largest single portfolio purchase in the locally headquartered company’s 50-year history. The portfolio of five Doubletree hotels in five different states was acquired from GE Asset Management. The purchase pushes its year-to-date acquisition and development activity to just under $1 billion and its overall room count to about 8,000.The five hotels are located in Tyson’s Corner, VA; Chicago (Michigan Avenue); Atlanta (Perimeter Center); Scottsdale, AZ (Paradise Valley); and Santa Monica, CA. TPG says it will spend in excess of $50 million to upgrade and re-brand the existing hotels in an effort to improve their position in the marketplace and attract higher rated business. All but one will remain in the Hilton family of brands.TPG’s executive vice president in charge of acquisitions Robert Leven told GlobeSt.com in June that the acquisition provides two beachheads for the company in the western region of the US, which will be a focus of the company going forward. “We’ve spent the last three or four years looking for assets [in the Western US] but have been able to find enough incentive to make the move,” he said. “Now that we’ve done this deal, which gives us a little bit of bulk to grow from, we’ll be looking a lot more seriously at [properties in the West] that come across our desk.” The properties are performing “fairly well” but are “slightly under branded” for the marketplaces they are in, said Leven, adding, “We just feel like those markets have a little more rate elasticity than what the current brands are able to capture.” The Doubletree Guest Suite properties in Chicago (345 rooms) and Atlanta (224 rooms) will be converted to Hilton Suites. The Doubletree Guest Suite in Santa Monica (253 rooms) will become an Embassy Suites, which is also a Hilton brand. The Doubletree Paradise Valley (387 rooms) will continue to fly Hilton’s Doubletree flag but will be repositioned as a resort and spa. It will have two large pools featuring water slides and sports, poolside bars, cabanas and other upscale amenities. TPG plans to retrofit an office building adjacent to the hotel into a full-service, upscale spa. The Tyson’s Corner property (401 rooms) will receive a complete renovation en route to flying a Westin flag. The Westin brand is considered an upper upscale brand, below the luxury Ritz Carlton and Four Seasons brands but above the upscale Marriott and Hilton brands. New hotel amenities will include a new, outdoor restaurant, new meeting space and a completely new lobby.