Vikram Antin, an associate in Marcus & Millichap REIBC's National Hospitality Group, tells GlobeSt.com that while the Richmond upscale hotel market is becoming stronger because of spillover from DC, these assets are still not trading at the high levels that they are in the Washington area. A comparable hotel trade in the DC market would be at $200,000 to $225,000 per key.
A full-service operation, Sheraton Park South will be managed by Davidson Hotel Co. Ted Arps, SVP of business development for Davidson, tells GlobeSt.com the new owners plan to invest close to $2 million in upgrades to better attract business and convention goers to the hotel.
"We will be upgrading the exterior of the property, meeting rooms, adding flat panel TVs to the guest rooms--changes of that nature," he says.
Arps says the only other full service in the immediate area is a Holiday Inn. "So we will continue to push for regional businesses that utilize meeting space."
Located at 9901 Midlothian Turnpike, the seven-story Sheraton Park South is 15 minutes from downtown Richmond and close to the University of Richmond, Virginia Commonwealth University and Virginia Union University, as well as a number of major office parks.
Hotel amenities include a 24/7 business center, a restaurant, lounge and 10,000 sf of meeting space that can accommodate groups of up to 550.
The other hotel acquired for the Value Enhancement Funds is a 301-room Gaithersburg Hilton outside Washington, DC. Davidson is also managing that acquisition.
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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.
