Laurus Corp. Sells Repositioned Holiday Inn Express for $15.8M
- Mar 16, 2015
Real estate investment and development firm Laurus Corp. has announced the $15.3 million sale of the Holiday Inn Express & Suites – New Orleans Airport South, having achieved a 33.5 percent internal rate of return and 2.3 times equity multiple in less than three years of ownership.
Laurus purchased the 130-key property in March 2012 and kicked off a renovation and repositioning project. The property was completely refurbished, including the guestrooms; public areas including the lobby, conference room and breakfast area; exterior façade; as well as a new courtyard deck, pool deck and landscaping. Hotel amenities now include 3,800 square feet of meeting space, a fitness center, an outdoor pool and a business center. The renovation had a price tag of $2.7 million and earned high accolades, earning the InterContinental Hotels Group 2013 Renovation Award.
Laurus’ repositioning strategy also included a rebranding of the property, from Ramada Suites to Holiday Inn Express & Suites. The company also selected a new hotel management company for the property. The combined effort of the new management company, Laurus’ asset management team and the extensive renovation resulted in a five-fold increase in the hotel’s net operating income.
“We were able to exceed our pro forma numbers on every key metric, including cash yield and IRR, and monetized two years ahead of our originally targeted exit date,” said Austin Khan, Laurus’ chief investment officer.
Holiday Inn Express & Suites – New Orleans Airport South enjoys a highly visible location at the entrance of the 200-acre, Class A James Business Park, which features more than 2 million square feet of commercial space. The hotel is in close proximity to Louis Armstrong International Airport, which serves 9.7 million travelers a year and is currently undergoing an $826 million, 30-gate expansion.
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Image courtesy of Laurus Corp.