HVMG Snaps Up Prime Atlanta Embassy Suites as All-Suites Trend Rises
Find out why HVMG is bullish on the brand.
ATLANTA—Hospitality Ventures Management Group acquired a two-hotel portfolio that includes Embassy Suites by Hilton hotels in San Rafael, CA, and Atlanta, GA. HVMG acquired the hotels in a joint venture for an undisclosed amount. The company will also operate the all-suites hotels.
“With the addition of these two properties, our portfolio now includes nine Embassy Suites hotels, one of the most respected and top performing brands in the industry,” says Robert S. Cole, president and CEO of HVMG. “These are perfect additions to our expanding portfolio of full- and select-service hotels that can benefit from improved management and/or significant capital improvements.”
Located in Atlanta’s Central Perimeter area near Dunwoody, the Embassy Suites by Hilton Atlanta Perimeter Center is one block from Perimeter Mall, the new Shoppes at Perimeter Place, 1155/1117 Perimeter Center West and Sandy Springs MARTA Station. Hotel guests receive a complimentary, cooked-to-order breakfast and evening manager’s reception, but dining is also available at Expressionz.
The hotel also provides a full-service business center, fitness room, indoor pool and a grab-n-go convenience store. With a private bedroom and separate parlor area, suites come with a TV in each room, living area with a sofa bed, armchair and work table, wet bar, refrigerator, microwave and coffeemaker.
Bill Duncan, global head of Hilton’s All Suites brands, tells GlobeSt.com all suites hotels have a track record of providing a strong return on investment, including during economic downturns, and having growing appeal with business and leisure travelers. The profit margins for this segment, especially with the extended stay brands, are strong, and ADR continues to steadily increase while occupancy remains high.
Compared to 2014, all of the All-Suites brands saw increases in occupancy, RevPAR and ADR. Most notably, Embassy Suites and Homewood Suites saw a more than 5% increase each in RevPAR, while Home2 Suites saw a jump of nearly 9%.
“The outlook for this segment also remains strong, especially in the extended stay space. The Highland Group’s 2016 Extended Stay Lodging Market Report noted that RevPAR had increased by 7.4%, which was one of the biggest annual gains in the last 16 years,” he says. “In addition, occupancy remains at the highest level since 2000, demonstrating the strong demand for these types of hotels.”