'Virtual Concierge' is Planned for Marriott

IRVINE, CA—CBRE Strategic Partners US Value 7 fund's newly acquired Irvine Marriott Hotel will feature the 'virtual concierge' program that has been successful in the San Jose market. According to the San Jose Mercury News, the program was launched in that hotel last year, offering guests a virtual mobile check-in service to bypass the front desk and proceed directly to their room.

CBRE Global Investors, the fund's sponsor, declined to reveal the identity of the seller or the purchase price prior to deadline, but industry sources unrelated to the deal report the fund purchased the 487-room, 16-story, full-service Irvine hotel from a joint venture between Blackstone and Eastdil for $125.8 million. The property, located at 18000 Von Karman Ave., is located within the Irvine Towers mixed-use complex, which features more than 1.1 million square feet of class-A office space.

GlobeSt.com was also unable to reach CBRE Global Investors before deadline to determine the value of the virtual concierge program, what it will bring to the Irvine Marriott and why it has been so successful in the San Jose Marriott, a 506-room, class-A, full-service hotel asset acquired by another Strategic Partners US fund in May 2013. Expanding access to the Concierge Lounge and associated amenities beyond the property's five physical “concierge levels” provides another opportunity to increase the average day rate, according to CBRE.

Amenities at the Irvine property include a newly renovated lobby, restaurants and lounge; 27,000 square feet of meeting space; and a fitness center, swimming pool and parking. The CBRE team plans to reposition the asset via a significant capital program, including renovations to room finishes and improvements to the fitness center, pool area, common areas and landscaping.

According to John Sauter, principal, CBRE Global Investors, “The Irvine Marriott's strategic location and strong brand affiliation make it one of Orange County's most prominent hotels and position the property for strong RevPAR growth as corporate and transient demand continue to improve.”

As GlobeSt.com reported earlier this month, CBRE GI closed CBRE Strategic Partners US Value 7, the latest in its series of US value-add funds, at north of $1.3 billion. With equity commitments from 26 institutional investors worldwide, drew more investors and raised more capital than its predecessor, which closed in December 2012 at $1.1 billion from 22 investors. A spokeswoman told GlobeSt.com it's the largest to date of the 10 US Value funds raised over the past 15 years.