The deal takes the Atlanta-based hotelier to six hotels in the Dallas-Fort Worth metroplex. Its Texas portfolio includes one hotel in San Antonio, two in Austin and three in Houston.

Homestead acquired the three-acre property at 18470 N. Dallas Parkway from Parkway Hotels LP, a group of Dallas-based owners, Gary A. DeLapp, Homestead's president and CEO, tells GlobeSt.com. The conversion plan is being polished as the hotelier starts taking bids from general contractors. The plan is to have the work done in 30 to 45 days.

The three-year-old Dallas North Hawthorn Suites had an annual occupancy of 40%, according to DeLapp, who's not disclosing the facility's other financials. But, he quickly adds, "with the brand name and the systems we have we can add a lot of value." He says the physical upgrades will be minimal since the hotel is in "great shape."

The New York City-based Blackstone Real Estate Investors is the majority owner in Homestead, which operates under the moniker of BRE/Homestead Village LLC. That backing gives depth to the acquisition play. It's not a bottomless funding pool, says DeLapp, but it's substantial enough that Homestead is looking to buy in all major metros--particularly the Northeast and West Coast--for product similar to what it found in Dallas.

Until now, Homestead opted to build rather than buy and convert. Since 1992, it has amassed 14,941 rooms in 100 hotels in 28 states. DeLapp says no other properties are under contract at this time.