Gentry Mills Adds $80 Million in Hospitality Assets to Portfolio

Gentry Mills Capital, a Texas-based real estate investment firm and sponsor of non-traded direct investment offerings, has recently purchased three branded hotel properties.

Gentry Mills Capital, a Texas-based real estate investment firm and sponsor of non-traded direct investment offerings, has recently purchased three branded hotel properties for approximately $80 million.

The firm purchased Homewood Suites by Hilton in the Philadelphia suburb of Lansdale, Pennsylvania. The six-story, 104,800-square-foot hotel sits on 3.6 acres and has 170 guest suites.

Gentry Mills also acquired Homewood Suites/Hilton Garden Inn, a dual-branded hotel located in the Southbank neighborhood of Downtown Jacksonville, Florida. The eight-story hotel totals approximately 157,100 square feet and has 221 guest rooms.

Lastly, the company purchased Springhill Suites by Marriott in Lakeway, Texas, a waterfront town next to Lake Travis approximately 20 miles from Austin. The four-story, 54,700-square-foot hotel is situated on 2.3 acres and includes 88 guest suites.

William Glass, president of Gentry Mills, believes that the current landscape presents “tremendous value in specific markets,” which the company is focused on.

“To date, the COVID-19 pandemic has not generated the distressed asset opportunities that the entire real estate community expected,” said Glass. “There was an enormous amount of capital raised in 2020 in anticipation of widespread distress throughout the real estate industry, and many hospitality property owners were bolstered by resources such as congressional stimulus package funding and relaxed banking agreements, preventing distressed properties from becoming available. This put extreme pressure on investment firms to deploy the capital they had raised.”

Glass explained that caution is still warranted, and the firm continues to avoid markets that are “overheated and frenzied” in favor of pursuing opportunities in what he believes are “solid, stable markets with sound fundamentals.”

“Within these stable markets, we are finding property owners with assets that they can no longer maintain, creating tremendous opportunity for buyers,” he said. “We are making those opportunities available to the broker-dealer and [registered investment advisors] communities.”

Since 2006, Gentry Mills has raised more than $250 million in capital for approximately $1 billion in assets purchased.

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