STONEHILL STRATEGIC CAPITAL, an affiliate of Peachtree Hotels Group in Atlanta, Georgia, has financed a $93 million hotel development in Washington, D.C.
Lima Hotels LLC, owned by Habte Sequar, broke ground in mid-July for a 247-room Holiday Inn Express in the district’s Mount Vernon Triangle neighborhood. Holiday Inn Express is a limited-service, upper-midscale brand by InterContinental Hotels Group.
Sequar had plans to construct the hotel several years ago. Because of zoning laws in place at that time, he was going to develop a mix of hotel rooms with apartments at 4th Avenue and K Street. Sequar has specialized in developing multi-family projects for the past 20 years.
However, new hotel plans are underway as the municipality in 2016 changed the zoning regulations for the area.
A commercial building and an auto-body shop have been demolished to make way for the hotel. Construction is to be completed at the end of next year.
Urgo Hotels & Resorts of Bethesda, Maryland, will operate the property.
The hotel is three blocks east of the Apple Store that is to open in July in the historic Carnegie Library. It is also near the Walter E. Washington Convention Center, a 2.3 million-square-foot building that completed an interior redesign in January.
The Mount Vernon Triangle neighborhood is 17 blocks of mixed-use development, which includes restaurants, shops, high-rise condominiums, apartments and 1.8 million square feet of office space.
The Holiday Inn Express is one of several hotel projects underway in the neighborhood. Local officials anticipate nearly 1,000 rooms to be added to the market over the next several years.
Stonehill also recently assisted in Gulf Breeze, Florida-based Innisfree Hotels’ debt restructuring for its Hampton Inn & Suites Panama City Beach in Panama City, Florida. Peachtree Hotel Group is led by Mitul Patel, Jatin Desai and Greg Friedman.