Lightstone Buys Baton Rouge Hotels for $15.6M
By Eliza Theiss, Associate Editor
Lightstone Value Plus Real Estate Investment Trust Inc. (LVPR) recently acquired two Baton Rouge hospitality assets, paying $15.6 million for a Courtyard and Residence Inn—both Marriott-branded hotels. LVPR, a public, non-traded REIT, had been in negotiations with the seller since 2012 and had locked in the acquisition price several months ago, avoiding the currently rising market prices.
“The acquisition contains two well-located premium franchise hotels that were acquired at a substantial discount to replacement cost,” declared LVPR Chairman and CEO David Lichtenstein.
Aiming to profit from improving market recovery indicators, both assets will be repositioned through property improvements. Additionally, the hotels will also be placed under new management within Lightstone’s hospitality division.
Totaling 229 rooms, the franchise hotels are located in close vicinity to each other just off I-10, which connects the Capital City to New Orleans. Both assets are strategically located with regard to major business and employment opportunities of Baton Rouge, such as the Port of Baton Rouge—the tenth largest in the U.S.; Louisiana State University; the recently-constructed Women’s Hospital of Baton Rouge; the 1-million-square foot Industriplex Business Park; and no less than 65 petrochemical facilities.
The 121-key, three-story Courtyard by Marriott comprises 115 rooms and six suites. It features two meeting rooms for a total of 1,000 square feet of meeting space, Wi-Fi throughout the property, a fitness center, heated indoor pool, whirlpool, onsite Bistro signature dining venue, a Starbucks coffee house and onsite parking. The property’s lobby underwent a $3.1 million renovation in 2010.
The 108-key, three-floor Residence Inn by Marriott extended-stay hotel offers amenities such as a full-service business center, 400 square feet of meeting space, Wi-Fi throughout the property, a fitness center, outdoor pool, whirlpool, sport court, barbeque/picnic area and onsite parking. Guest rooms boast fully equipped kitchens. Additionally, guest rooms, meeting rooms and the lobby are expected to undergo renovation work shortly.
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Image courtesy of Courtyard by Marriott Baton Rouge Siegen Lane’s Google+ profileTags: Development, Maintenance, property management