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After Selling Dallas Midtown Hotel, Dallas Group Seeks More Dual-Branded Hotels

Dallas-based Civitas Capital Seeks More Dual-Branded Hotel Projects After Selling a Dallas Midtown Project in April
May 10, 2018
Shortly after selling the dual-branded AC Hotel and Residence Inn Dallas by the Galleria last month, Dallas-based Civitas Capital Group is seeking to acquire or develop additional dual-branded hotel projects.

Dual-branded hotels have become increasingly attractive as developers and operators are able to double up offerings within a single property, catering to two sets of clientele while sharing operational costs. Though located in a single building, the hotels will usually have different entrances.

Civitas Capital, along with investment partner Atlantic Hotels Group, has sold the five-story, 256-room hotel at 5460 James Temple Dr. in Dallas to DG Hotels Ventures, an affiliate of Pacific Hospitality Group Ventures. Terms were undisclosed.

The Dallas-based investment firm, which specializes in EB-5 funding, expects to continue to seek investment opportunities in the dual-branded hotel industry, said David Perel, managing director and head of lodging investments for Civitas.

"We continue to be attracted to the dual-branded hotel concept, which provides efficiencies both in terms of development and operations," Perel said, in a statement. "This is the second dual-branded hotel we have developed within the City of Dallas and will continue to look for such opportunities both locally and regionally."

Perel declined further comment on Civitas Capital's future investment plans.

In the last 18 months, Civitas Capital has partnered with Atlantic Hotels Group on various hotel projects in North Texas and in the Marriott International chain. This includes the Aloft and Element Hotel at Dallas Love Field, the Residence Inn Dallas at the Canyon, and the soon-to-open Springhill Suites in McKinney.

The AC Hotel and Residence Inn Dallas by the Galleria is likely to play a role in helping anchor the proposed $4 billion Dallas Midtown redevelopment of more than 400 acres between the Galleria and Preston Road north of LBJ Freeway.

The dual-branded hotel concept appeals to a diverse group of visitors, ranging from European-style rooms catering to executives to suites for longer-staying guests needing up to two bedrooms, which was appealing to Civitas Capital executives. The investment group also likes to invest in emerging neighborhoods, such as Dallas Midtown.

Candace Carlisle, Dallas-Fort Worth Reporter  CoStar Group   
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