Waramaug to go after the secondary, tertiary markets
Waramaug LS Hotels, a private investment group, is turning its attention to midscale hotels in secondary and tertiary markets. The firm just announced it acquired the 100-room Courtyard by Marriott Paducah West, in Kentucky, as part of its newly formed $150-million fund, which expects to acquire at least 15 properties over the next eighteen months.
The hotel will remain a Courtyard will be managed by Waramaug’s joint venture partner, Interstate Hotels and Resorts.
“This hotel has strong investment potential and has been substantially renovated by the previous owner,” said Paul Nussbaum, Waramaug’s founder and managing partner. “It represents the type of hotel our new fund seeks to acquire: high quality select-service hotels under strong brands and substantially below replacement costs. The Paducah market is a vibrant market, with a range of corporate and leisure demand generators, which attract a broad spectrum of visitors. We believe there is significant upside for this hotel, particularly given its recent renovation.”
Waramaug LS Hotels, whose principals include Nussbaum and Paul Stern, will focus on acquiring legacy branded select-service domestic hotels in strong secondary and tertiary markets.
“The partners behind Waramaug along with our asset management team have decades of experience acquiring and repositioning hospitality assets,” said Nussbaum. “We will ensure all assets in our portfolio become market leaders and reach their full value potential. We have worked hard to develop a strong asset management platform to execute on our strategy.”
Added Stern, “We are actively pursuing acquisitions throughout the country, and have already developed a strong pipeline to fuel our growth.”
The venture between Waramaug and Interstate?continues a partnership?that has seen the two acquire hotels in various segments and markets over the past few years. Last July,?the JV acquired?the 295-room Williamsburg Hotel & Conference Center, in Virginia, and?in January?added the 718-room Radisson Resort Orlando ? Celebration.
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