California Investor Enters D.C. Market With Dulles Business Hotel Buy
A California-based real estate investor is landing in the D.C. region at Dulles Airport.
Avistone acquired the 187-room Courtyard Dulles Airport Herndon at 13715 Sayward Blvd., the company announced Wednesday. Property records show it bought the hotel from an affiliate of New York-based MCR Hotels for $19.2M.
The property previously changed hands in 2016 for $16M, property records show.
The hotel's amenities include a 24-7 business center, a fitness center, a 40-person meeting space and an on-site restaurant called The Bistro. Avistone Vice President of Lodging Investments Youngbin Park said the property is poised to benefit from the gradual return of business travel and the long-awaited completion of the Silver Line's second phase.
"That Silver Line Metro stop ... I think we're finally getting in at a good time where there's good visibility into the kind of growth it will bring," Park said.
Park joined the firm two weeks ago from Hersha Hospitality Management, where he spent more than six years. He said he was attracted to Avistone in part because of its strategic fund, which is seeking 9% returns on investments in the hotel sector.
This is Avistone's first Virginia property. The firm, founded in 2013, has invested in 27 hotel and industrial business park properties across California, Georgia, Texas, Florida, Ohio and now Virginia.
Park said the firm's goal is to achieve a greater geographic reach with its portfolio while it is in acquisition mode. He said it probably won't look to acquire another suburban Northern Virginia property, but more urban locations like D.C., Bethesda and Annapolis are still on the table.
"Our plan is to scale up the portfolio pretty quickly," Park said.
Park said a strong leisure travel segment and a growing return-to-office shift mean it's only a matter of time before business travel mounts a true comeback. He anticipates Avistone's new property will be ready to take advantage of that.
"I feel a lot of people invested in this location 10 years too early, and their investment didn't really work out due to the delays of the Metro," Park said. "I think we finally see a light at the end of the tunnel."
