Electra America Hospitality Group (EAHG), a joint venture between Electra America and AKA targeting the acquisition and repositioning of underperforming hotels in gateway markets, has purchased a 178-key hotel in Old Town Alexandria, Virginia — a hotel that was once a part of the Old Colony Inn — for an undisclosed amount.
Last month, the joint venture acquired the leasehold of the Roger New York, a 194-room boutique hotel in Manhattan’s NoMad neighborhood, for $19 million. These transactions mark EAHG’s first two hotel acquisitions since the joint venture launched in February 2021.
“These acquisitions illustrate Electra America Hospitality Group’s laser focus on exceptionally well-located assets in gateway markets where distress or another combination of factors has created an opportunity to acquire a high-quality hotel at a significant discount and generate long-term value upon the recovery of the hospitality sector,” said Russ Urban, CEO of EAHG. “Our goal is to execute on a bold re-imagining of both hotels that will transform them into the best product in their respective submarkets. Simultaneously, EAHG continues to source opportunities in other major markets where the pandemic has fundamentally altered the hospitality landscape, including Miami, Los Angeles, Nashville and London, along with New York City and Washington D.C.”
EAHG will invest roughly $36 million in the renovation of the Alexandria hotel and $22 million in upgrades to Roger New York. The hotel in Old Town Alexandria, located at 625 First Street, will be converted into a four-star hotel with an iconic destination restaurant. Both hotels will re-open in 2022 under the AKA brand, offering a mix of short-term and extended-stay lodging options catering to the upscale leisure and corporate traveler.
EAHG expressed confidence in the full recovery of the hotel industry in both markets.
“In New York City, many hotels have permanently closed and there’s been a fundamental shift in the marketplace, but we fully expect business to come roaring back as it has during past recessions,” said Urban. “Meanwhile, in Alexandria, we have the opportunity to transform the hotel into something unparalleled in that market and cater to strong corporate demand stemming from the large number of industry associations and trade groups in the area, as well as the sizable government/defense sectors.”