BANYAN INVESTMENT GROUP of Atlanta on July 24 completed the acquisition of a three-hotel portfolio in Madison, Wisconsin.
The 372-room deal totaled approximately $50 million or $134,400 a key.
Banyan Investment Group also manages the hotels, which are the 127-room Courtyard by Marriott Madison East; the 130-room Fairfield Inn & Suites Madison East; and the 115-room Hampton Inn Madison East Towne Mall Area.
“In addition to expanding our footprint into the Great Lakes region, this portfolio aligns perfectly with our strategy of targeting strong markets with multiple demand generators that are well positioned to weather all phases of the economic cycle,” said Andy Chopra, founding principal and chief investment officer at Banyan.
The transaction was complex, said Kat Lash-Williams, a hotel analyst with Banyan. But Banyan and North Central Group, a Madison developer, were able to settle in two months. “From the lenders to the franchisers, everyone was well motivated to move quickly and precisely.”
The hotels are near the University of Wisconsin and Fortune 500 company headquarters, including American Family Insurance. It also is near Madison, and close to Minneapolis, Milwaukee and Chicago.
The Courtyard is directly off Interstate 90. It has more than 1,000 square feet of meeting space.
The Fairfield Inn is across the parking lot from the Courtyard. It recently underwent a multi-million-dollar renovation.
The Hampton Inn is across from the East Towne Mall, home to more than 120 shops and restaurants.
In June, Banyan acquired the 110-room Courtyard by Marriott Houston Pearland in Pearland, Texas, near Houston. The company expects a nearly immediate return on its investment in the hotel due to its location in Pearland Town Center, a popular mixed-used development, said Chopra.