Marriott Autograph Portfolio

Location: Atlanta, Georgia

Size: $62,000,000

Challenge: Underwriting

Type: Capital Advisory

The TWELVE Hotels were developed in 2005/06 as part of luxury residential projects.  Our client had the inside track on buying these independent properties.  Due to anticipated cost savings through better management, the cap rate was around 6%, which included one acre of excess land with 500,000 square feet of FAR.  As we architected the conversion of the hotels to Marriott Autograph to achieve a stronger top line, we also had to contend with layering in additional franchise costs and making the debt yield minuscule.  By pinpointing redundant marketing costs and other savings, we achieved over 80% leverage at L+575 bps, while leading the entire acquisition, raising a portion of the equity and heavily negotiating the franchise agreements with Marriott.

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