Date: October 2018
Location: Dupont Circle, Washington DC, USA
No. of Keys: 147 currently
Seller: Quadrangle Development & Capstone. They bought it in 2013 for US$43.5m.
Quadrangle has developed six full-service hotels, conference centres and resorts with a total of 4,443 rooms in markets in and around Washington, DC, under Hyatt, Hilton and Marriott brands, including the Grand Hyatt Washington.
Quadrangle has three additional hotels in its development pipeline, for a total of approximately 500 rooms.
Capstone has offices in Washington DC and London, UK with interests in 25 hotels mostly in the USA under Hilton, and is building a mixed-use development – Columbia Place, which includes a 310 room Courtyard by Marriott, a 190 room Residence inn and 230 residential units.
Buyer: Queensgate Developments, owner of The Generator Hostels business.
This is Generator Hostel’s second location in the US, following its Miami opening earlier this year.
Generator Hostel launched in 1995 in London and then expanded to Berlin. It has steadily moved across Europe, opening its biggest property in Paris in 2015 with 917 beds in 199 rooms. In 2016 it opened three locations in Amsterdam, Rome and Stockholm and then this year opened its first US location in Miami.
The company is now focused on building out its US holdings. “The acquisition of the Washington DC asset marks the next step in Queensgate’s US ambitions as we look to acquire both additional hotel assets to expand Generator as well as working on the acquisition of new standalone real estate platforms of significant scale,” says Jonathan Millet, Head of Acquisitions of Queensgate in a prepared statement.
The Dupont Circle hotel will continue to be run under a Marriott franchise with incumbent manager Crestline during 2018 and 2019; then it will be converted to the Generator brand.
Queensgate Investments is a partnership between the Kow Family, LJ Partnership and Peterson Group. IT advises and manages in excess of $2 billion of assets.
Price per Key: US$ 368,027
THPT Comment: Interesting move for Generator to take a conventional hotel to convert, given their model is 2/4 to 10 beds in a room.
First Seen: Global St.com