DALLAS-Inland American Lodging Group Inc., a wholly owned subsidiary of Inland American Real Estate Trust Inc., acquired the 545-room Fairmont Dallas for $69 million from Pacific Coast Capital Partners LLC and DiNapoli Capital Partners, LLC, both of which are based in California.
The hotel at 1717 N. Akard St. opened in 1969 as Dallas’ first luxury hotel. In addition to its guest rooms, the Fairmont has 70,000 square feet of meeting space. “This is considered a unique asset to own,” comments Inland American Real Estate Trust senior investor relations manager Dan Lombardo. “It’s a prominent hotel, and very well-known.”
Lombardo tells GlobeSt.com that the hotel also adds more punch to the IAGL portfolio. “We’re more in the limited-service, upscale properties,” he adds. “This will add to our full-service portfolio of hotels.”
Since 1997, the luxury hotel has received approximately $50 million of capital improvements. IAGL, located in Oak Brook, IL, will continue moving the hotel’s capital improvement plan forward, while retaining the asset’s name.
The Fairmont is IALG’s second hospitality acquisition in Dallas. In Oct. 2010, IALG acquired the 407-room Dallas Marriott City Center at Dallas Marriott City Center at 650 North Pearl St., which is also undergoing renovations to its guest room and public spaces.
Lombardo declined to comment on IAGL’s specific acquisition strategy in the region. He did say, however, that Texas, and Dallas, in particular, are attractive locations.
“Texas remained solid through the Great Recession,” he remarks. “Dallas offers so many different corporate headquarters and is becoming a destination place for meetings and conferences, as well as for leisure travelers. It’s becoming almost a gateway type of city.”
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