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RICHMOND, VA-Dallas-based Prism Hotels & Resorts has acquired the Radisson Richmond for an undisclosed amount. According to sources in the industry, the seller was Apollo Real Estate Group in New York.
Prism, which has operated the hotel for the last three years, plans to invest $8.9 million to renovate the 230-room hotel, located at 301 West Franklin St. Renovations will be completed in April 2007, according to the firm.
Steve Van, president and CEO of Prism Hotels & Resorts, tells GlobeSt.com that this acquisition is part of the company's overall expansion north and east of its Texas base. Last year it acquired a DoubleTree in Wilmington, DE. Prism also just took over management of an Embassy Suites in Boston, and has several management assignments in the Washington, DC area, as well.
The firm plans to make at least five more acquisitions this year, he adds, in the Southeast and Midwest. Currently it is looking at properties in Dallas, Iowa, Louisiana and Ohio. It has about $35 million in equity waiting to be invested--a mix of its own capital and other investment partners, Van says. "The debt on that would be about $65 million--we usually put 35% equity in any deal, and do 65% leverage."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
