Banyan Investment Group and Investra Investments have acquired a Homewood Suites on Providence Park Drive, two miles from the regional airport in Mobile, Alabama. Loxi Hospitality provided advisory services with the transaction.
The property will immediately undergo a $2.7 million renovation -- expected to be complete by early next year -- that will meet or exceed the architectural and design standards specified by Hilton Worldwide’s Take Flight initiative.
Features of the three-story Homewood Suites include 86 one and two-bedroom suites, each with a separate living room and fully-equipped kitchen; a business center; fitness center, outdoor pool; barbeque area; onsite convenience store; and 400 sq. ft. of meeting space.
Banyan and Investra have collaborated on two other projects in 2014 that total $20 million in combined acquisition and improvement costs.
“This is our third asset acquisition together during the past 12 months, consistent with our company’s North American real estate investment strategy of tripling our hotel portfolio by the end of 2015,” according to Mobeen Jassat, principal with Investra that is based in Dubai and London.
“In collaboration with strong local operators such as Banyan, we are pursuing select service assets that feature well-known and well-respected hotel brands.”
Added Andy Chopra, Chief Investment Officer and a principal with Banyan Investment Group, “Our firms continue to actively evaluate value-added acquisition opportunities and we expect to proceed with appropriate projects in coming months. The southeastern region is an area that we know very well and this site is especially desirable.”
Located nearby the Homewood Suites are the campuses of the University of South Alabama and Springhill College, as well as Providence Hospital, and major facilities of Alabama Power and the U.S. Coast Guard.
Another demand generator for the hotel is the new $600 million Airbus facility that will employ 1,000 people and be that company’s first North American passenger jet manufacturing center.
Atlanta-based Banyan Investment Group has a portfolio of about 20 properties, including the Aloft Downtown Atlanta, that are located primarily in southeastern states such as Florida, Georgia, Kentucky, Tennessee, South Carolina, and Alabama. The company, now under the direction of second-generation Asian American hoteliers, has more than 40 years of experience in developing and managing branded hotels.
Investra Investment LLC is a commercial real estate investment firm with a portfolio across various market classes in the United Kingdom, notably central London; the Middle East; and the United States. The company, whose principals have more than 20 years of real estate investment experience, manages more than $500 million in assets.
Loxi Hospitality is an asset management, investment banking, and advisory practice based in Paris, France that focuses on the hotel sector. It currently manages a portfolio of about 10 hotels and has participated in more than $1 billion of hotel transactions worldwide with various advisory, brokerage, and financing services.