WOODVALE, AN ATLANTA-based private equity firm, acquired three hotels in November: the dual-branded Courtyard and Residence Inn Memphis Southaven in Memphis, Tennessee, and the Fairfield Inn & Suites Atlanta Buford Mall of Georgia, Atlanta. The 163-key Memphis hotels were purchased from Chartwell Hospitality, while the 96-room Georgia hotel was acquired from Hotel Equities.
Woodvale is led by Founder and Managing Partner Rahim Charania.
Hunter Hotel Advisors Chief Operating Officer Lee Hunter, along with Senior Vice Presidents David Perrin and Tim Osborne, facilitated the deal. Terms were not disclosed.
The dual-brand hotels in DeSoto County, Memphis, are located near Downtown Memphis, the Beale Street Entertainment District, BankPlus Amphitheater, Baptist Memorial Hospital, St. Jude Children’s Research Hospital, and the University of Memphis. The hotels cater to both leisure and business travelers, offering fitness centers and pools.
“Our acquisition of the Southaven Marriott Portfolio underscores our commitment to adding high-quality, strategically located assets to our portfolio,” said Bashir Mansour, Woodvale’s vice president for investments. “We expect these acquisitions to deliver strong returns for our investors and benefit Southaven’s growing community.”
However, Chartwell Hospitality will continue to manage the hotels after the ownership change.
“We are excited to partner with Woodvale and cultivate a long-term relationship,” said Kevin Green, Chartwell Hospitality’s chief operating officer. “Southaven has been a key market for us over the past 17 years, and we look forward to continuing our success there.”
The Fairfield Inn & Suites Atlanta Buford Mall of Georgia is located near the Mall of Georgia, Lake Lanier, and The Exchange @ Gwinnett. The 96-room hotel features a 24/7 fitness center, meeting spaces, and an indoor pool. The new owner plans to renovate all guestrooms and public spaces.
“The Fairfield Inn & Suites Atlanta Buford Mall of Georgia has been a top performer in the Hotel Equities portfolio for the past nine years,” said Fred Cerrone, Hotel Equities’ founder and former co-owner of the hotel. “While we’re sad to see it leave, we’re proud to see its potential recognized by Woodvale.”
Rahim Charania, of Indian origin, founded Woodvale, a commercial real estate investment firm, in 2018. The firm focuses on the Southeast U.S. and manages over $500 million in assets across various sectors. Charania also established American Fueling Systems in 2011 and Three Ring Studios in 2016.
CBRE recently reported that U.S. hotel performance is expected to rebound in the fourth quarter, despite subdued summer demand and a sluggish third quarter. RevPAR growth for 2024 is now projected at 0.5 percent, down from 1.2 percent in August, largely due to a 40 basis point drop in expected occupancy.
