According to an SEC filing, the company paid $130 million for the 14-story, 521-key Renaissance Waverly Atlanta Hotel, which is located at 2450 Galleria Pkwy. It paid $107.5 million for the 492-room Renaissance Austin Hotel, located at 9721 Arboretum Blvd.
"These two acquisitions are right-on-strategy for our company. We were able to acquire very high-quality hotels in strong markets at reasonable prices. We also believe that Renaissance is a brand on the rise," says William McCarten, chairman and CEO of DiamondRock, in a statement.
The Renaissance Waverly is located in the Northwest submarket of Atlanta, the second largest in the city. The hotel is attached to the Cobb Galleria Centre, a 320,000-sf convention center, and offers some 65,000 sf of meeting and exhibition space.
The Renaissance Austin Hotel is located along the city's tech corridor Research Boulevard, in the Arboretum submarket. It offers 60,000 sf of meeting space.
John Williams, president and COO of DiamondRock, says in a statement the company will conduct $12 million in renovations this year on the properties. "The renovations include revenue enhancing projects such as adding 14 new keys at the Austin hotel and repositioning the Waverly hotel's food & beverage offerings," Williams says.
Vikram Antin, an associate with Marcus & Millichap's National Hospitality Group, tells GlobeSt.com that the new acquisitions are a good fit into DiamondRock's existing portfolio. "They already own the Renaissance in Worthington, Texas and have two business class and one urban class hotel in the Georgia market." He notes that DiamondRock has made several strategic investments since 2004, including a 1,200-key Chicago Marriott for $295 million.
DiamondRock did not return phone calls.
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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.
