FORT WASHINGTON, PA—Ethika Investments, a real estate private equity firm says one of its investment funds has sold its interest in the Hilton Garden Inn Philadelphia/Ft. Washington hotel for $22.5 million. The buyer was not disclosed.
Acquired by Ethika in 2013 with fund sponsor Laurus Corp., the investors say they spent $2.5 million targeted renovation to public spaces and guest rooms, selection of a new management company, focused efforts to raise RevPAR, and strategic marketing bringing up guest satisfaction – winning Trip Advisor's Certificate of Excellence 2013, 2014, 2015 and Aimbridge Hospitality's Presidential Award for RevPAR Growth 2013, 2014, 2015. Laurus says the property achieved a 20.1 percent gross IRR and 1.9x gross equity multiple in under four years.
“This successful disposition underscores our strategy of investing in ideally located value-add assets in dynamic and flourishing markets around the US,” says Austin Khan, chief investment officer of Ethika Investments. “Through a diligent application of the value-add strategy by our affiliate, Laurus Corp., this hotel moved from an opportunistic investment to stabilization and sale to a core investor.”
Ethika and Laurus acquired the 146-key property in 2013 for a reported $16.4 million, according to Real Capital Analytics, a proprietary research database.
“The successful sale of this hotel, the second disposition for Laurus-sponsored assets within the past two weeks, continues to highlight our consistent ability to source, execute and monetize on opportunistic and value added real estate investments,” says Andres Szita, Laurus chairman. “As always, we carefully evaluate each project and define a custom strategy for each property, aiming at delivering the best possible risk-adjusted outcomes.”
FORT WASHINGTON, PA—Ethika Investments, a real estate private equity firm says one of its investment funds has sold its interest in the
Acquired by Ethika in 2013 with fund sponsor Laurus Corp., the investors say they spent $2.5 million targeted renovation to public spaces and guest rooms, selection of a new management company, focused efforts to raise RevPAR, and strategic marketing bringing up guest satisfaction – winning Trip Advisor's Certificate of Excellence 2013, 2014, 2015 and Aimbridge Hospitality's Presidential Award for RevPAR Growth 2013, 2014, 2015. Laurus says the property achieved a 20.1 percent gross IRR and 1.9x gross equity multiple in under four years.
“This successful disposition underscores our strategy of investing in ideally located value-add assets in dynamic and flourishing markets around the US,” says Austin Khan, chief investment officer of Ethika Investments. “Through a diligent application of the value-add strategy by our affiliate, Laurus Corp., this hotel moved from an opportunistic investment to stabilization and sale to a core investor.”
Ethika and Laurus acquired the 146-key property in 2013 for a reported $16.4 million, according to Real Capital Analytics, a proprietary research database.
“The successful sale of this hotel, the second disposition for Laurus-sponsored assets within the past two weeks, continues to highlight our consistent ability to source, execute and monetize on opportunistic and value added real estate investments,” says Andres Szita, Laurus chairman. “As always, we carefully evaluate each project and define a custom strategy for each property, aiming at delivering the best possible risk-adjusted outcomes.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
