According to an Interstate release, the Westin Atlanta Airport will be its largest single acquisition. In addition to the $149,500-per-key price, Interstate will spend $18 million to renovate the rooms and common areas. The deal will be financed with cash on hand and funds drawn from a line of credit; a spokesperson tells GlobeSt.com that Interstate declined to reveal the cap rate.
"This is a well-maintained, high-profile airport property in one of the largest and most economically important cities in the Southeastern US," Interstate CEO Thomas F. Hewitt says in a statement. He adds Interstate has operated the hotel for nine years. "At less than $150,000 per key, it is priced well below replacement cost and represents a very attractive opportunity with compelling economics and the potential to generate significant long-term shareholder returns."
The Westin Atlanta Airport is located at 4736 Best Rd. in the city's College Park suburb. It is adjacent to Interstates 85 and 285, near the Georgia International Convention Center and eight miles from Downtown. The hotel features a full-service restaurant, lounge, a business center, fitness center, indoor/outdoor pool, and 23,000 sf of flexible meeting and banquet space.
"This is our first Westin acquisition and further solidifies our already strong relationship with Starwood," adds Leslie Ng, Interstate's chief investment officer. "The purchase represents a continuation of our successful strategy to diversify our revenue base beyond management fee income with wholly owned and joint venture real estate investments. We continue to seek other well-located, quality assets in high-barrier-to-entry markets with significant upside potential at attractive, competitive pricing."
Ng adds that Interstate expects the city's development pipeline, including 3.2 million sf of office under construction in the metro area and an expansion project at Hartsfield-Jackson Atlanta International Airport, to fuel demand at the hotel.
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