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PROVIDENCE, RI-The Procaccianti Group has signed a binding agreement to acquire a portfolio of five Doubletree hotels in five different states from GE Asset Management for $300 million. The locally headquartered hotel company says the purchase–its largest ever–will push its year-to-date acquisition and development activity to just under $1 billion and its overall room count to about 8,000. The transaction is expected to close July 1. The five hotels are located in Tyson’s Corner, VA; Chicago (Michigan Avenue); Atlanta (Perimeter Center); Scottsdale, AZ (Paradise Valley); and Santa Monica, CA. TPG says it will undertake “a multimillion-dollar” upgrading and re-branding of the existing hotels. All but one will remain in the Hilton family of brands.TPG’s executive vice president in charge of acquisitions Robert Leven tells GlobeSt.com the properties are in line with the company’s strategy of acquiring upscale hotels that can benefit from substantial renovations and brand repositioning and are located in markets with high barriers to entry. In addition, he says the acquisition provides two beachheads for the company in the western region of the US, which will be a focus of the company going forward. “We’ve spent the last three or four years looking for assets [in the Western US] but have been able to find enough incentive to make the move,” Leven tells GlobeSt.com. “Now that we’ve done this deal, which gives us a little bit of bulk to grow from, we’ll be looking a lot more seriously at [properties in the West] that come across our desk.”The properties are performing “fairly well” but are “slightly under branded” for the marketplaces they are in, says Leven. “We just feel like those markets have a little more rate elasticity than what the current brands are able to capture.”The Doubletree Guest Suite properties in Chicago (345 rooms) and Atlanta (224 rooms) will be converted to Hilton Suites. The Doubletree Guest Suite in Santa Monica (253 rooms) will become an Embassy Suites, which is also a Hilton brand, and the Doubletree Paradise Valley (387 rooms) will continue to fly Hilton’s Doubletree flag. The Tyson’s Corner property (398 rooms) is likely to fly a Westin flag, according to TPG.Leven says the Tyson’s corner property will require the most work to get it up to the standard of a Westin. The Westin brand is considered an upper upscale brand, below the luxury Ritz Carlton and Four Seasons brands but above the upscale Marriott and Hilton brands.

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