RockBridge Partners, an affiliate of RockBridge Capital, LLC (“RockBridge”), today announced the acquisition of a 197-room, full-service Sheraton hotel located in Ann Arbor, Mich. RockBridge will complete a comprehensive $8 million renovation of the property and convert the hotel from a Four Points by Sheraton to the flagship Sheraton brand. Jonathan A. Benowitz, managing director of RockBridge, made the announcement.
The renovation will commence in December 2010 and will be completed prior to the University of Michigan graduation ceremonies in May 2011, at which time the conversion will take place. Every aspect of the hotel will receive upgrades including an enhanced exterior facade, full renovation of the public areas including the lobby, restaurant and lounge, expansion of the existing fitness center and enhanced meeting space. The guest rooms will be fully refurbished with upgraded bedding and a comprehensive soft and case goods package.
The hotel has an excellent location, two miles south of downtown Ann Arbor and the University of Michigan and easily accessible from I-94. Amenities include a full-service restaurant and bar, indoor/outdoor pool, fitness center, business center, complimentary local area shuttle service and over 16,000 square feet of meeting space. The hotel holds a strong competitive advantage as it is the only branded full-service hotel in Ann Arbor and features the highest quality meeting space, thus appealing to the group business that is driven by the University and the other area demand generators.
“The transaction is the latest example of RockBridge’s investment strategy of acquiring and repositioning assets, increasing cash flow and creating equity value,” said James T. Merkel, President of RockBridge. “We view the Ann Arbor Sheraton as an exciting opportunity to once again capitalize on a high-quality asset in a stable University market with tremendous upside.”
RockBridge Partners was formed as the equity platform of RockBridge Capital, LLC. RockBridge provides capital to the hospitality industry through its Hospitality Funds and focuses on both debt and equity investments. The principals of RockBridge have formed and managed nine investment funds totaling nearly $1 billion, across multiple platforms with both institutional and private investors. Focused on creating value for their hotel operating partners, RockBridge invests first mortgage, mezzanine, and equity capital in hotels throughout the U.S. Since 1992, RockBridge has invested in over 330 assets nationwide with aggregate transaction capitalization of nearly $5 billion. For additional information about RockBridge, visit www.rockbridgecapital.com.