John Buck Co. will handle site selection, construction and development in the joint venture. Interstate Hotels will operate the hotels once they have been built. The two firms will also be equity partners in the hotels.
Paul Novak, John Buck Co.'s managing director, hospitality division who will oversee development of the hotels, tells GlobeSt.com that the JV expects to do between five to seven hotels initially using roughly $50 million in equity. He would not disclose leverage but did say "there will be an appropriate amount of debt on each project." According to Novak, the JV is in negotiations on a number of other sites as well.
Aloft is new brand introduced by Starwood Hotels & Resorts Worldwide, Inc. Preliminary plans of the joint venture are based on the standard 136-room aloft hotel prototype. In major urban locations hotel developments may expand to 300 keys.
The JV has acquired a site in Rancho Cucamonga, CA and expects to close on a site in suburban Nashville this spring. It expects to begin construction this year at both sites.
The Rancho Cucamonga development will be a 136-key hotel in HavenPark, a $60-million, mixed-use project currently under construction near Ontario Airport. The hotel is expected to deliver in early 2008.
The Tennessee site is in Cool Springs, a suburb in the southern section of Nashville. The 143-room aloft Cool Springs will be next to D-1 sports training, an amateur and professional sport training facility. This hotel is expected to open in late spring 2008. Interstate Hotels did not return calls in time for publication.
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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.
