Noble Investment Group Buys Four Residence Inn by Marriott Hotels in Greater Cleveland
- Mar 10, 2014
Noble Investment Group last week announced the acquisition of four Residence Inn by Marriott hotels in the greater Cleveland metro area. The Atlanta-based company did not disclose how much it paid for the properties.
According to Noble’s website, the four properties include the 175-room Residence Inn Cleveland Downtown, the 174-room Residence Inn Cleveland Beachwood, the 118-room Residence Inn Cleveland Independence and the 96-room Residence Inn Cleveland Mentor. They all feature large suites with full kitchens and offer complimentary hot breakfast, Wi-Fi, grocery delivery service and other amenities. Noble also announced plans to upgrade and redesign the properties to enhance the guest experience. The Residence Inn by Marriott brand is a top choice for guests seeking affordable, upscale accommodations when traveling for an extended period.
“Given the robust demand growth in the Cleveland MSA, Noble believes there is significant opportunity to maximize asset performance with renovations targeted toward enhancing the guest experience. With a going-in cap rate of approximately 11.5 percent on trailing 12-month income, this portfolio represents an attractive combination of in-place yield, considerable income upside and a basis that is well below replacement cost,” said Noble principal Ben Brunt in a statement for the press.
Marcus & Millichap reports that the hospitality market in the Midwest, a region that encompasses Illinois, Indiana, Michigan, Ohio and Wisconsin, performed well in 2013 and that it is expected to continue on the same path in 2014. Business travel remains a primary driver of the hotel sector’s performance, and Cleveland has no shortage of businesses. The city has emerged as a global leader in healthcare, biomedical engineering and technology, home to many important companies. Also, Ohio’s Utica Shale is fast becoming an important driver of economic activity in the region. As households regain the wealth lost during the recession and as the job market becomes more stable, leisure demand will also improve, leading to increased performance.
Photo credit: Marriott.com