ATLANTA, GA & LOS ANGELES, CA (August 10, 2015) – Hotel Development Partners (HDP) and funds managed by the real estate group of Ares Management, L.P. (NYSE: ARES) recently announced the purchase of three select service hotels with a total of 248 rooms in North Charleston, South Carolina. The well-positioned hotels include two carrying the Marriott brand—the Residence Inn by Marriott Charleston North/Ashley Phosphate and the Fairfield Inn & Suites by Marriott Charleston North/Ashley Phosphate—as well as a third that is part of the Choice Hotels portfolio of brands.
Clustered together in an area just 15 minutes from Historic Downtown Charleston, the hotels provide an opportunity for both leisure and business travelers to enjoy on-site amenities as well as access to many businesses, local attractions and several popular local restaurants.
“HDP and Ares are very fortunate to have the opportunity to invest in these hotels with their industry-leading brands and highly desirable locations in the expanding Charleston market,” said Allen T. O'Brien, CEO, Hotel Development Partners. “To add value and appeal, HDP plans additional renovations to the three properties in the latter part of the year.”
This transaction follows the acquisition of seven Atlanta hotel properties by HDP and funds managed by Ares, bringing the total number of jointly-owned hotels to 10.
“We are excited to be investing in these three well-established hotel properties with a partner that has both broad local and regional experience as well as a proven track record in managing high-quality hospitality properties,” said Steve Wolf, Partner in the Ares Real Estate Group. “Investments in stable assets that can be further enhanced fit nicely into our longstanding value-add strategy, and we look forward to working with HDP on their repositioning.”
In conjunction with this transaction, Atlanta-based Hotel Equities, which has a joint venture partnership with HDP, assumed management of the three hotels.
"This portfolio addition gives us three Marriott hotels in Charleston and a total of four in a market that continues to grow, especially in the northern part of the city," stated Fred Cerrone, Chief Operating Officer of HDP and Founder & CEO of Hotel Equities.
About Hotel Development Partners
Hotel Development Partners, LLC (HDP) is an Atlanta-based joint venture formed by Hotel Equities and IRE Capital for the purpose of acquiring and developing premier-branded, select service hotels. HDP Investment Fund II, LLC is the investment vehicle which allows private investors to participate in institutional-quality hospitality properties. Principals of HDP are Robert J. McCarthy, Chairman; Allen T. O'Brien, CEO; and Frederick W. Cerrone, COO. HDP also owns seven Marriott select service hotels in and around Atlanta, the 102-room Fairfield Inn & Suites, Charleston, SC and the 175-room Residence Inn, Surfside (Miami Beach), opening in the late fall of 2015.
About Ares Management
Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $87 billion of assets under management as of March 31, 2015 and more than 15 offices in the United States, Europe and Asia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.
About Hotel Equities
Hotel Equities (HE) is an Atlanta-based full-scale hotel management, development and consulting firm operating more than 90 hotels throughout North America. Frederick W. Cerrone, CHA, serves as Chairman and CEO; Brad Rahinsky serves as President and COO.
For more information, visit www.hotelequities.com.
For HDP & HE:
Margaret M. Jones
Director of Public Relations
For Ares Management: