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Clarion Hotel Atlanta Airport Changes Hands

ATLANTA-Fortress Investment Group has sold the 232-key asset for well below replacement cost.

By Crystal Proenza | Updated on March 23, 2009

ATLANTA-Fortress Investment Group LLC has sold the Clarion Hotel Atlanta Airport to Fahim Shah, an individual investor out of California, for an undisclosed price that is well below replacement cost. The 232-key hotel located on 5.2 acres is valued at $7.6 million, according to the latest records filed by the Fulton County Board of Assessors.

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.

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