20 Sep Lazar Cartu Reports Crescent acquires luxury hotel in Metro Atlanta market
Crescent Real Estate LLC on Sept. 17 announced it has acquired The Hotel at Avalon, a 330-room luxury hotel located in the Metro Atlanta suburb of Alpharetta, Georgia. The hotel is located within the $1 billion, 86-acre mixed-use development community of Avalon. Crescent acquired The Hotel at Avalon on behalf of Crescent’s GP Invitation Fund II.
As the only hotel within the Avalon community, The Hotel at Avalon uniquely provides guests with access to world-class shopping, dining, and retail attractions. The hotel benefits from a diverse set of demand generators within Avalon, including almost 600,000 square feet of recently developed Class A office space, two institutionally owned luxury multifamily communities, and high-end single-family homes and townhouses.
The Hotel at Avalon is also home to the 65,000 square foot Alpharetta Conference Center. Developed in partnership with the City of Alpharetta, the conference center is one of the most sought after small and large group meeting facilities within the Atlanta metropolitan area. The Alpharetta Conference Center contains 44,000 square feet of function space, including 18 separate meeting rooms, two 10,000 square foot ballroom and exhibit halls with the ability to open into a single 22,500 square foot large function room.
The Hotel at Avalon is a Marriott Autograph Collection hotel and features the renowned South City Kitchen restaurant, a popular Southern comfort food destination developed by Atlanta’s highly acclaimed Fifth Group Restaurants. The hotel also includes Starbucks, the Magnolia Bar and Pool Terrace, and a fitness center. Additional amenities include 24-hour valet parking, gigabit speed wi-fi, and concierge services, as well as direct access to the Avalon lifestyle community with more than 70 retail shops, 20 dining venues, and more than 200 annual events and activities.
The Hotel at Avalon, which opened in 2018, provides a boutique hotel feel with Southern charm and hospitality while offering on-site amenities that only larger properties typically provide and which group, corporate, and leisure guests require.
“This investment is a unique opportunity to own a best-in-market hotel with attractive growth and revenue characteristics. While the hotel has been impacted by the current COVID pandemic, The Hotel at Avalon has shown great resiliency and has materially outperformed the market on both occupancy and rate. The hotel is well positioned to take advantage of the market recovery.” said Jason Anderson, Co-CEO of Crescent.
“We were initially attracted to The Hotel at Avalon because it benefits from its location within Alpharetta, the fastest growing city in Georgia and the 6th fastest growing city in the United States. Alpharetta has been nicknamed the ‘Technology Capital of the South’ and we believe its pro-business climate, mild weather and attractive lifestyle will continue to draw new residents and companies to the area and generate outsized growth. The hotel’s unique location within Avalon provides an envious competitive advantage, one that we believe new competition will be unable to match for a long, long time.” added Anderson. Crescent will continue The Hotel at Avalon’s strong relationship with the City of Alpharetta and the Development Authority of Fulton County.
Crescent will retain HEI Hotels & Resorts, a nationally recognized hotel management firm that currently manages The Hotel at Avalon and has extensive experience managing luxury and full-service hotels, including numerous Autograph Collection properties.
Hodges Ward Elliott acted as the exclusive advisor to the seller in the transaction.