In 2007 BPG plans to develop three hotels in suburban Maryland, including a double-decker structure in Hanover that will contain two hotels, and two hotels in Dulles, VA, The double-decker project, for which BPG is the final stages of the permitting process, incorporates a 150-key Hilton Garden Inn and a 100-key Homewood Suites by Hilton in one building.
The architects initially laid out two separate buildings on the 10-acre site, near Arundel Mills and BWI before they realized that consolidating the structures would cut the site and foundation work in half, according to information provided by the company. Now plans call for the first floor to serve as a lobby and common area for the Hilton Garden Inn, with elevators, giving access to the rooms on floors three through six. The second floor, served by an entrance on the opposite side of the building, will be the lobby of the Homewood Suites. Rooms are located on the top floors.
The two hotels in Dulles are both 135-key properties: one is a Hilton Garden Inn, the other is Aloft by W. The company tends to focus on Hilton or Starwood brands, according to Pollin.
Development costs for these five projects are roughly $125 million, Pollin says. If the two projects in DC come through, that will bring its investment in DC's hotel sector next year to $200 million.
Either number is significant for the area, Vikram Antin, an associate in Marcus & Millichap's National Hospitality Group, tells GlobeSt.com. A $200-million investment, he estimates, would roughly translate into $125,000 per key. "It is difficult to bring existing supply into this market. I am not surprised they are bullish on it." Antin says he is unaware of any other developer with such a pipeline for the area.
BPG is also actively developing hotels in the Pennsylvania, Delaware and New Jersey markets. "But our heaviest concentration for hotels right now is the DC area. We believe the best opportunities are here right now," Pollin says.
BPG just opened its latest hotel project Wednesday evening--a 280-key Hilton located at BWI Airport in Maryland. PM Hospitality Strategies Inc. is managing the Anne Arundel County property.
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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.
