The Clarion, located at 5010 Old National Highway, is less than three miles from Hartsfield-Jackson Atlanta International Airport and 10 miles from Downtown Atlanta. Amenities include indoor and outdoor pools, a casual-dining restaurant and over 7,000 square feet of meeting and banquet space. Currently, room rates at the Clarion range from $59 to $79 per night. Average occupancy at the hotel is about 60%, which is the market average, says Mark Fair, managing director for Jones Lang LaSalle Hotels.

Fortress Investment Group was the original lender on the property, which was up for sale for a year and a half until the firm foreclosed and hired Jones Lang LaSalle Hotels to market the hotel. Offers were made that were substantially higher than the final sales price, says Fair, but were unable to close because of lack of financing. "The seller ultimately decided on a seller-finance offer because the price premium over all-cash offers was about 30%," he says.

The deal worked out for both parties involved, explains Fair, because the buyer was able to secure attractive financing in a market where financing is almost impossible, and the lender now has a borrower that is planning to put substantial capital into the asset. Shah, who will also operate the hotel, plans to complete $1.5 million to $2 million in cosmetic renovations, including new carpets, drapes, bedspreads and TVs. New flooring will also be installed in the common areas and meeting space will be renovated.