RADCO Companies (RADCO) has acquired The American Hotel, a 315-room, full-service hotel in Downtown Atlanta from Legacy Ventures.
Legacy Ventures will continue to provide management services for the property.
Further terms of the deal have not been disclosed.
Opened in 1962 as the American Motor Hotel, it has been a fixture of the civil rights movement and hosted meetings of influential leaders such as Martin Luther King Jr.
This transaction represents the third acquisition by RADCO’s new hotel division rolled out in early 2021.
RADCO CEO Norman Radow said that the firm is seeking out hospitality assets that are aligned to its investment strategy.
Radow said: “It’s no secret that the hospitality sector suffered considerably in the wake of the global pandemic, especially hotels in central business and entertainment districts that thrive on corporate leisure and convention center demand such as Downtown Atlanta.
“The American Hotel provided a unique opportunity to acquire a recently renovated asset with tremendous value-add and mark-to-market potential.”
Legacy Ventures acquired the hotel in 2015 and finished $16m renovation programme in 2017, including rebranding the property as The American Hotel, while restoring and revitalising the asset, and adopting a retro 1960s theme.
RADCO intends to build on these upgrades and up brand the property to Hilton’s new Tapestry Collection brand.
Legacy Ventures founder and president David Marvin said: “It has been a career highlight restoring the historically significant American Hotel. Now under RADCO’s ownership, Legacy Ventures will continue as the property’s hotel and restaurant managers.
“Legacy Ventures is geographically diversifying, but we will continue to be headquartered and engaged in downtown Atlanta where we own and manage multiple other hospitality assets.”
With a 28-year history, the RADCO Companies has been acquiring and investing in real estate.
RADCO’s first project in hospitality sector was in 1994. This project involved the redevelopment of a distressed 53-story Atlanta hotel, office and condominium tower, which later became the Four Seasons Hotel.
It recently re-entered the hospitality market with the acquisition of the 174-room DoubleTree by Hilton Atlanta Roswell hotel in Roswell, and the 80-room DoubleTree by Hilton Atlanta Alpharetta hotel in Alpharetta, both in the US state of Georgia.
The American Hotel is located in the heart of Downtown Atlanta, just a block from the Peachtree Center shopping destination and the city’s central business district.
The hotel is also located directly across the street from wholesale trade show centre, AmericasMart, and a short distance from Centennial Olympic Park, the Georgia World Congress Center, State Farm Arena and Mercedes Benz Stadium.
Radow added: “RADCO projects that the hospitality market will experience a significant recovery in the short term and that the Downtown core of Atlanta will continue to be a robust attraction for many years to come.
“Current plans for investment, especially Centennial Yards, a planned $5 billion development adjacent to Centennial Park, will stimulate continued growth and additional visitors to the area.”