Alex. Brown Realty Enters into Joint Venture with Piedmont Hospitality to Acquire the Downtown Holiday Inn Atlanta

Baltimore, MD – Alex. Brown Realty (ABR), a national real estate investment company, has entered into a joint venture with Piedmont Hospitality (Piedmont) to acquire the 260-room Holiday Inn Hotel in downtown Atlanta, Georgia. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $10.79 million to the venture. Emil Iskandar of HVS Capital Corporation secured a $23.10 million debt financing on behalf of the joint venture.

The full-service hotel, which has an onsite underground parking garage, is located just west of downtown Atlanta’s central business district and adjacent to the Olympic Centennial Park. The hotel is also within a short walking distance to several business and tourist demand generators including the Georgia World Congress Center, Georgia Dome, Georgia Aquarium, CNN Center, and World of Coca-Cola museum.

The hotel was constructed in 1985 and has operated as a Holiday Inn since 1999. Historically, it has lagged its competitive set in terms of its average daily rate and to a lesser extent, occupancy. To elevate the hotel’s profile among business and leisure travelers and increase its market penetration, Piedmont and ABR will implement a $3.50 million product improvement plan (PIP) to upgrade both the common areas and guest rooms. The PIP follows a capital improvement program completed by the hotel’s former owners in 2006 which included a $1.40 million reskinning of the hotel’s 11-story exterior façade.

“We see implementing the PIP as a terrific opportunity to add value to a well-located urban hotel in great physical condition,” commented Robert Baldwin, Piedmont’s founder, president and CEO. Baldwin further commented that, “we look forward to exceeding the expectations of both our guests and our investors.”

This is the second joint venture between ABR and Piedmont. In October 2006, the two firms acquired the 220-room Doubletree Club Hotel adjacent to the Hartsfield-Jackson Atlanta International Airport. That hotel continues to exceed all underwritten performance expectations. “For more than 30 years, our strategy has been to develop a strong network of talented local operators who understand their markets and provide a consistent source of deal flow. We’re pleased to do business once again with Piedmont,” commented John Prugh, ABR’s president and CEO.

Alex. Brown Realty
(ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States.

Piedmont Hospitality was founded in 1998 by Robert Baldwin. The Atlanta-based firm acquires and manages hospitality assets throughout the United States.