Lightstone Buys Two Hotels in Austin, Texas
Lightstone Value Plus REIT III, a publicly registered non-traded real estate investment trust, purchased the Fairfield Inn & Suites Austin and the Staybridge Suites Austin for $22 million.
“We believe that we’ve uncovered significant potential in the Fairfield Inn & Suites Austin and the Staybridge Suites Austin,” said Lightstone president Mitchell Hochberg. “We’re excited to become a part of the Austin market as we continue to grow as a national real estate and hospitality leader.”
Opened in June 2014, the Fairfield Inn & Suites Austin features 84 guestrooms and suites with a living room-style lobby and additional social spaces. Lightstone said that it intends to initiate a sales and marketing campaign to help the asset gain market awareness and attract local corporate clients and travel departments.
The Staybridge Suites Austin, which opened in April 2009, features 80 suites and amenities including high-speed Internet, fully-equipped kitchens, a full-service business center, and an outdoor pool. Lightstone noted that it plans to improve revenue management discipline and modernize the interior appearance to better compete with newer hotels that are currently commanding higher average daily rates.
Located close to downtown Austin, the properties are in close proximity to a number of key demand drivers nearby the tech corridor, including the Austin Convention Center, the University of Texas at Austin and its 100,000+-capacity Darrell K Royal-Texas Memorial Stadium, the LBJ Presidential Library, and the Austin-Bergstrom International Airport.
Lightstone Value Plus REIT III invests primarily in hotels, as well as in other types of properties and real estate related assets. The REIT, which currently owns a portfolio of nine properties, commenced its $300 million offering in July 2014 and has raised $98 million since inception.
