PEACHSTATE HOSPITALITY HAS sold its new Courtyard by Marriott Downtown Dallas for $49 million to Chatham Lodging Trust, a REIT.
The 167-room full-service upscale hotel opened in September. It cost approximately $35 million to develop. It is the only hotel in the neighborhood offering a rooftop lounge. It also is the first new-build hotel to open in downtown Dallas, Texas, in seven years.
PeachState Hospitality, of which Danny Patel is CEO, is based in Warner Robins, Georgia. It broke ground on the Dallas hotel in October 2016. Equity Hotel Group LLC, led by Bipin Hira, is a partner in the project, which was part of PeachState Hospitality’s $350 million development spree launched in 2016.
Read more about PeachState Hospitality’s growth strategy.
Jeffrey H. Fisher, CEO of Chatham Lodging Trust, said the REIT was attracted by the quality of the property and is proximity to the Kay Bailey Hutchison Convention Center. It also is next to Union Station. The deal closed on Dec. 5.
“We are very picky when assessing acquisition opportunities, and this hotel fits our long-term growth strategy to acquire younger, premium-branded, high-quality hotels in infill locations with diverse demand generators,” Fisher said in a statement. “The top-floor meeting space and rooftop restaurant/bar provide something unique to downtown Dallas and give us a tremendous asset to generate incremental business from a variety of sources.”
The 12-story Courtyard by Marriott Dallas Downtown has a parking garage and 3,500 square feet of meeting space. Guestrooms are on floors five through 11.
The hotel, said Fisher, has a “competitive advantage over nearby select-service hotels which are entirely adaptive re-use or conversion projects.”
Island Hospitality Management is the property manager. Fisher is founder, president and CEO of the company.