Dallas firm dives into deep Texas hotel market pool

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Rodrigo Godoi and Bob Mohr with DoubleTree by Hilton Austin (Mohr Capital)

Dallas-based real estate investment firm Mohr Capital made its debut in the hospitality market with the purchase of a hotel in Austin.

The company purchased the DoubleTree by Hilton Austin hotel at 6505 North I-35 from an international real estate investment firm for an undisclosed amount. The hotel is three miles north of downtown near the busy intersection of I-35 and US Highway 290 in Austin’s central St. Johns neighborhood.

The six-story hotel has 250 rooms and 5,000 square feet of meeting space, including a ballroom. Mohr plans to invest $11 million to upgrade the property, which includes renovating guest rooms, meeting space, the ballroom and elevators. HEI Hotels & Resorts, a Connecticut-based hotel investment and third-party management firm specializing in high-end properties such as the Westin in Manhattan and the Sheraton in downtown Atlanta, will manage the hotel.

The acquisition is Mohr’s first in the hotel market and marks the opening of its hotel vertical. The company has investments in office, retail, industrial and land leases. It had been looking to enter the market when it was delayed by the pandemic, Bob Mohr said. He now plans to buy similar properties across the country.

The purchase is part of a strategy to acquire “much maligned full-service suburban assets that are perpetually out of favor with big investors who dislike the segment,” Mohr’s Rodrigo Godoi said in a statement. hurry. Additionally, he says, “our acquisition in Austin is somewhat unique given the quality of the asset and its near-urban geography. We may be going against the grain here, but we like our strategy.

The timing certainly works well with the state of Austin’s hotel market. It’s one of the top three in the country, according to CBRE Hotels Research, and room inventory is expected to grow more than 4% in 2022.

In related deals in other parts of the state, Chatham Lodging Trust just sold three properties in Texas which, along with one in Massachusetts, fetched $80 million. San Antonio’s hotel bookings and revenue surpassed those of Houston, Dallas and Austin in the fourth quarter of 2021.

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