Sotherly Hotels Inc has announced that subsidiary of its operating partnership, Sotherly Hotels LP, has purchased Hyatt Centric Arlington hotel in a $79.7m deal.
Located in Arlington, Virginia, the fifteen-story interior corridor building of Hyatt Centric Arlington houses 318 guestrooms, including five suites.
Sotherly Hotels Inc CEO Drew Sims said: “We are pleased to announce the acquisition of the Hyatt Centric Arlington. The Hotel is ideally located in the Rosslyn submarket of Arlington, Virginia, a short walk across the Potomac River from Washington, D.C. and the luxury Georgetown shopping district.
“A prominent piece of the Rosslyn business community for over 40 years, the Hotel is located just steps from the Rosslyn Metro station and in the heart of the high-density office market.
“This acquisition gives the company solid footing in the dynamic and consistent Washington, D.C. lodging market and we believe it will benefit our shareholders over the long-term.”
The Hotel features a 5-story subterranean parking garage with capacity to park nearly 300 cars.
In 2016, the property underwent a $6.2m renovation as part of its conversion to Hyatt Centric, Hyatt’s full-service lifestyle brand.
Besides its proximity to the Rosslyn Metro Station, Hyatt Centric Arlington is situated at the junction of five major road networks and is less than five miles from Ronald Reagan National Airport.
The hotel operated at 84% occupancy with an average daily rate (ADR) of $176.31, androom revenue per available room (RevPAR) stood at $148.13for year-end 31 December 2017.
As a part of the deal, Sotherly Hotels Inc concluded a new $57m first and second mortgage with Fifth Third Bank to partly fund the deal and signed a new franchise pact with Hyatt Hotels.
Under a new management agreement, the acquired property will continue to be managed by Highgate Hotels.