Argosy Invests in the Holiday Inn Atlanta
On August 5, 2015, Argosy Real Estate Partners III, L.P. and its parallel funds made a controlling investment in the acquisition of a 260-room Holiday Inn hotel located in downtown Atlanta, Georgia. AREP III secured the property in an off-market negotiated process at favorable pricing relative to replacement cost and comparable sales.
The 11-story hotel, which was developed in 1985, has operated as a Holiday Inn since 1999. The hotel is situated on 1.1 acres and includes 2,500 square feet of meeting space, a restaurant and bar, a fitness center, an outdoor pool, and 107 structured and surface parking spaces. The property is located less than one block from the 21-acre Centennial Olympic Park, which is the center of tourist-related activity in downtown Atlanta. The property’s location provides easy pedestrian access to all major entertainment venues and business generators in the downtown area, including the Georgia World Congress Center (convention center), Georgia Dome, World of Coca-Cola, CNN Center, Phillips Arena, and the Georgia Aquarium.
The business plan is to complete a significant renovation to the hotel that will address deferred maintenance items and position the hotel more competitively in the market. The scope is anticipated to include a full renovation of the guest rooms, corridors, elevators, meeting rooms, lobby, fitness center, and pool/patio area. In addition, the exterior will be redesigned to present a modern, upscale aesthetic.
AREP III partnered with Peachtree Hotel Group, a private owner/operator of hotels headquartered in Atlanta, Georgia. Argosy has successfully partnered with Peachtree on four previous investments, including the Sheraton Jacksonville in the AREP III Fund. Peachtree focuses on the acquisition, development, and management of premium-branded, select-service and extended-stay hotel assets in the Southeast. Peachtree will coordinate the renovation and provide property management services for the hotel.