DoubleTree by Hilton Atlanta Roswell Sold in Off-Market Deal for $13.75 MM

DoubleTree by Hilton Atlanta Roswell - Exterior
DoubleTree by Hilton Atlanta Roswell

The RADCO Companies (RADCO announced the acquisition of the 174-room, full-service DoubleTree by Hilton Atlanta Roswell hotel in Roswell, GA for $13.75 million from a real estate fund divesting of hospitality assets.

The seven-story property was constructed in 1985 and consists of 76 double-double and 98 king rooms, ±7,800 SF of meeting space, a full-service restaurant and bar, fitness center, mini market and outdoor pool. RADCO plans to modernize and upgrade the hotel, similar to the capital improvement strategies the company has applied to previous multifamily acquisitions.

The deal marks the first acquisition by RADCO’s new hotel division launched in early 2021 in response to the COVID-19pandemic’soperational and capital markets disruptions in the hospitality sector. The new hotel division expands RADCO’s investment capabilities and complements the firm’s existing multifamily, capital, and third-party management platforms. RADCO is actively seeking out hospitality assets that are in line with the company’s overall opportunistic investment strategy, according to CEO Norman Radow.

The RADCO Companies has a 27-year history acquiring and investing in opportunistic real estate across all asset classes. The firm’s investment strategy targets underperforming assets that offer immediate mark-to-market opportunities, as well as assets requiringcapital infusion to add value. RADCO seeks out well-located assets that have limited access to institutional debt or equity capital for avariety of reasons.

“We seek to invest in assets with a compelling acquisition story, and RADCO’s purchase of the DoubleTree by Hilton in suburban Atlanta employs all of RADCO’s investment criteria, representing an attractive opportunity in an excellent location,” said Mr. Radow, noting that the move into the hospitality sector is a return to the company’s roots.

RADCO’s first project in 1994 was the redevelopment of a distressed 53-story Atlanta hotel, office and condominium tower that later became the Four Seasons Hotel. The notable turnaround project put the company on the map and more than 100 successful projects later, RADCO remains a fearless, successful, and flexible leader in the real estate industry.

RADCO’s investment plans for the asset include a $6.25 million/$36k per key capital improvement plan largely consisting of upgrades andmodernization of the guestrooms and guest bathrooms, common areas, mechanicals, and technology to maintain quality and brand standards.

DoubleTree by Hilton Atlanta Roswell offers a prime location adjacent to GA-400, a major thoroughfare serving more than 160,000carsper day connecting Atlanta and the burgeoning city of Alpharetta, recently named the “Technology City of the South” and recognized as the number one place to live in the U.S. by Forbes. This corridor is growing rapidly and is home to major employers such as State Farm,Mercedes-Benz, UPS, Kimberly Clark, Verizon and more than 700 tech companies based in Alpharetta. The property is currently the only full-service hotel between The Perimeter and Alpharetta and is walking distance from Kimberly Clark’s corporate headquarters.

In addition to demand from business travelers, the property enjoys healthy leisure business as the closest full-service hotel toDowntown Roswell, a popular area for weddings and events.

The hospitality sector in general saw a major decline during the pandemic, resulting in drastically reduced occupancy and average dailyrates in this sector.