ATLANTA: Hotel Equities' Big Pipeline
Yesterday, Hotel Equities COO Brad Rahinsky told us the firm's raising capital for its second fund, worth $140M (vastly larger than its first: $35M). It'll be used to develop and acquire value-add hotels. “We like ugly, under-managed hotels. And we like hair on the deal,” Brad says. The fund is also letting the firm expand beyond the Southeast, including into Missouri, DC, Boston, NY, Texas, LA, San Fran, Denver, and Phoenix.
The firm already has a $120M pipeline coming out of the ground this year. (Above, its largest deal to date, the 175-key, $52M Residence Inn by Marriott in Miami Beach.) It's also planning to break ground on a 132-key Hampton Inn and a 124-key Residence Inn in Atlanta. (Between the chance to stay there, and your kids soon out of school for the summer, it's a great time not to be home.) To offset development costs, Brad says it's selling four outparcels at its Hampton site.
