Hodges Ward Elliott, as exclusive agent for the seller, is pleased to present for your consideration the 230-room Hilton Garden Inn Atlanta - Buckhead – a recently renovated, premium-branded hotel located in the heart of the Buckhead CBD, one of the Southeast’s premier mixed-use destinations.
SUMMARY OF OFFERING
Investment Highlights
Premier location within buckhead cbd
One of the country’s largest and most acclaimed urban mixed-use development areas, Buckhead’s diverse mix of prized office space, world-class shopping, luxury hotels, destination dining, high-rise residential, and popular entertainment venues is unrivaled in the Southeastern U.S. One of the most affluent areas in the Southeast, Buckhead also boasts some of the best transportation, infrastructure, schools, and neighborhoods in the city of Atlanta. The Hilton Garden Inn is immediately walkable to over 14M SF of Class A office space (second-highest asking rents in Atlanta), two premier super-regional malls totaling 2.3M SF of retail space (Lenox Square and Phipps Plaza), and over 3,000 high-end residential units, creating a unique seven-day demand base.
Excellent Physical Condition / Embedded Upside Stemming from Comprehensive 2019 Conversion
Following an extensive $9.1M ($39,565 per key) renovation, the Property opened as a Hilton Garden Inn in March 2019. Consequently, the Hotel has not had the opportunity to fully ramp as a renovated, premium-branded select-service property. The Hilton Garden Inn’s guest rooms are among the very best select-service guest rooms in Buckhead’s CBD, while the public spaces, food and beverage outlets, corridors and exterior / landscaping were also extensively improved, delivering a like-new asset to investors with minimal near-term capital requirements.
preeminent Meeting and Event Space in the market
With 6,951 SF of total event space, the Hilton Garden Inn benefits from enhanced meeting and event capabilities, as compared to more prototypical select-service properties, allowing for a more varied segmentation mix. Further, the Hilton Garden Inn’s 3,666-SF Peachtree Ballroom is the largest singular event space of any Hilton-branded hotel in Buckhead.
Exceptional Basis / Significant Discount to Replacement
At the expected level of pricing, the Hilton Garden Inn offers tremendous value to a new investor. The cost to build a new hotel in Buckhead today likely exceeds $350,000 per key, including land. The Hilton Garden Inn will trade at a significant discount to replacement, allowing a new owner to buy meaningfully below replacement cost in this premium Buckhead CBD location.
Zero New Supply Under Construction or in Planning in Buckhead
Since 2021, five new hotels have opened up in the historically high-barrier-to-entry Buckhead submarket. This record supply growth has equated to a 15.0% increase in inventory since 2019. Looking ahead, however, there are currently no hotels under construction or in planning in Buckhead – a true rarity among urban Sunbelt submarkets. By definition, this means there will be no hotels built in the submarket for at minimum the next three-four years, giving owners enhanced pricing power as demand continues to recover in Buckhead.
Limited Hilton Concentration in Buckhead
Hilton-branded product in Buckhead is limited, representing just 19.2% of inventory, as a legacy area of protection for the Hilton Atlanta (located Downtown) has historically prohibited full-service Hilton development in all of Atlanta’s in town neighborhoods, including Buckhead. In contrast, Marriott represents 49.9% of inventory. As a result, the Hilton Garden Inn has access to an extremely broad base of corporate, leisure and group Hilton Honors travelers, especially when considering the fact that the only true full-service Hilton-branded hotel in Buckhead is the 127-key luxury Waldorf Astoria, which competes at a much higher price point than the vast majority of the Buckhead submarket.
Clean investment offering
The non-union Hilton Garden Inn is being conveyed fee simple, and is being offered unencumbered of debt, affording a new owner flexibility, specifically in the capitalization of the Hotel.
