Marcus & Millichap Closes Dual-Branded Hospitality Asset Sale in Downtown Dallas
Marcus & Millichap (NYSE:MMI) announced the sale of the TownePlace Suites and Fairfield Inn & Suites Dallas Downtown, a dual-branded 274-room hotel in Dallas, Texas. This hotel, located in the historic Butler Brothers Building, saw over 20% growth in revenue per available room (RevPAR) from 2022 to 2023. The transaction marks the first hotel sale in the Dallas Central Business District (CBD) since January 2022. The buyer is a joint venture between Lowen Hospitality and Vashee & Associates, while the seller, Butler Brothers Hospitality Group , retains ownership of the building's 237 apartments and 20,000 square feet of commercial space. The hotel benefits from its proximity to key attractions and business hubs, including the Kay Bailey Hutchinson Convention Center and Dallas Love Field Airport.
- Over 20% RevPAR growth in the TownePlace Suites and Fairfield Inn & Suites Dallas Downtown from 2022 to 2023.
- First hotel transaction in Dallas CBD since January 2022.
- Strong market demand for room nights anticipated due to nearby $3.7 billion convention center redevelopment.
- None.
Insights
Marcus & Millichap’s announcement of the sale of TownePlace Suites and Fairfield Inn & Suites Dallas Downtown is noteworthy. The reported
For investors, the sale indicates confidence in the Dallas hospitality market, driven by factors like the $3.7 billion redevelopment of the Kay Bailey Hutchinson Convention Center and the upcoming 2026 FIFA World Cup games. These events will likely boost hotel demand, benefitting stakeholders. However, investors should note the market's dependency on such large-scale events and potential fluctuations in demand.
The transaction’s context—being the first in the Dallas CBD since January 2022—might indicate a cautious but growing interest in the region’s hospitality sector. The continued ownership of the commercial space and apartments by Butler Brothers Hospitality Group LLC also suggests a strategic diversification, which could stabilize revenue streams.
Understanding RevPAR is important for retail investors. RevPAR, or revenue per available room, combines both occupancy rates and average daily rates (ADR) to provide a comprehensive performance metric. The reported
Dallas has been experiencing robust growth in the hospitality sector, partly due to its strategic location and economic activities. The upcoming developments, like the Goldman Sachs campus and the FIFA World Cup, could further cement Dallas’s position as a prime destination, benefitting hotel operators and investors in the coming years.
However, investors should be cautious about over-reliance on such projections. While the market is promising, it is vital to consider potential risks, such as economic downturns or changes in travel behavior that could impact hotel performance.
The sale of the TownePlace Suites and Fairfield Inn & Suites is significant for the commercial real estate market. The dual-branded concept in an iconic building like the Butler Brothers Building shows innovation in maximizing property value. Such properties can attract diverse customer segments, enhancing profitability.
The ongoing ownership of the commercial space and apartments by Butler Brothers Hospitality Group LLC suggests a mixed-use strategy that diversifies income sources. This can be a prudent approach, providing stability and potentially shielding against industry-specific downturns.
The location within the Dallas Central Business District and proximity to major attractions and airports make the property highly attractive. The anticipated demand boost from large upcoming events highlights the strategic importance of location in real estate investments.
“The Dallas-Fort Worth Metroplex is one of the top markets for room demand in 2024,” said Chris Gomes, executive managing director investments in Marcus & Millichap’s
Gomes and Allan Miller, senior managing director investments, Marcus & Millichap, represented the seller, Butler Brothers Hospitality Group LLC, and procured the buyer, a joint venture between Lowen Hospitality and Vashee & Associates. The Butler Brothers Hospitality Group LLC will continue to own and operate the 237 apartments and the 20,000 square feet of commercial space at the Butler Brothers Building.
The hotel is in the Dallas Central Business District (CBD), within walking distance of Kay Bailey Hutchinson Convention Center, and Trammell Crow Park is nearby. Attractions in the area include The Sixth Floor Museum at Dealey Plaza, American Airlines Center, State Fair of
The TownePlace Suites and Fairfield Inn & Suites hotel has a distinctive red brick façade, 132 TownePlace Suites rooms and 142 Fairfield Inn & Suites rooms. Amenities include an outdoor pool and patio with barbecue grills, fitness center, business center, 1,050 square feet of meeting space, and a convenience store.
“This is the first transaction in the Dallas CBD since January 2022 when four hotels in the downtown area changed hands as part of a larger portfolio,” added Gomes. “Dallas CBD hotels are anticipating continued strong demand for room nights from the
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout
View source version on businesswire.com: https://www.businesswire.com/news/home/20240702092244/en/
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
510-999-1284
Source: Marcus & Millichap, Inc.
FAQ
What significant sale did Marcus & Millichap (MMI) announce in Dallas?
How much did the revenue per available room (RevPAR) grow for the TownePlace Suites and Fairfield Inn & Suites Dallas Downtown in 2023?
Who were the buyer and seller in the Marcus & Millichap (MMI) Dallas hotel sale?
What are the notable amenities of the TownePlace Suites and Fairfield Inn & Suites Dallas Downtown?
What factors are driving strong demand for room nights in Dallas CBD hotels according to Marcus & Millichap (MMI)?
