With business travel on the upswing, hotels in locations with a lot of corporate demand are sought-after by owners.
SREE Hotels bought the Hilton Garden Inn Raleigh-Durham Research Triangle Park from Blackstone Group in early 2023 for $21.25 million. The deal was selected as a winner of the 2024 CoStar Impact Award for sale/acquisition of the year in Raleigh, North Carolina, as judged by real estate professionals familiar with the market.
Blackstone was looking to recycle capital, while Charlotte, North Carolina-based SREE Hotels was attracted by the demand among generated among business travelers in the growing and diverse Research Triangle Park.
As part of the deal, Hilton changed the franchise license agreement to 10 years and will require an $800,000 change-of-ownership property-improvement plan.
Amenities at the hotel include a free shuttle service to nearby Raleigh-Durham International Airport, a restaurant, outdoor pool and fitness center.
SREE has 23 hotels in its portfolio, largely located in the Southeast and Midwest, and the company is both an owner and an operator of hotels.
About the Project: SREE Hotels financed the hotel purchase with a loan in the low 5% interest rate range from a legacy lender.
What the Judges Said: "With so many businesses coming to Research Triangle Park, we need more hotels and Hilton Garden Inn is a known, reputable product that adds value to the area," said Shelley Bhatia, senior vice president of TradeMark Properties.
They Made It Happen: Mayank Patel, senior vice president, Hunter Hotel Advisors.