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Australian Global Fund Manager Enters D.C. Hotel Market

SB&G Hotel Budgets $14.5 Million for Renovation of Greenbelt Marriott, Will Rebrand as Crowne Plaza Greenbelt
September 11, 2018
One of Australia’s largest hotel owners has made its first foray into the Washington, D.C., hotel market.

SB&G Hotel Group, the Melbourne-based hotel division of global fund manager SB&G Group, paid $19.65 million to acquire the Greenbelt Marriott, a 284-room hotel located northeast of Washington at 6400 Ivy Ln. in Greenbelt, Maryland. The allocated portion of the sales price for the real estate was $18.031 million, which is the price shown in public records.

The new owner plans to renovate the 1980s-era building and rebrand the property as the Crowne Plaza Greenbelt under the umbrella of global hotel operator InterContinental Hotel Group (IHG). International hotel management firm Valor Hospitality Partners will manage the hotel.

SB&G Hotel Group has a budget of $14.5 million for the planned renovation, which will include converting amenity space into three additional rooms.

The Greenbelt Marriott offers 10 meeting rooms and 11,200 square feet of meeting space as well as concierge services, an onsite bar and lounge, a health club, a business center and valet parking. It is also conveniently located to BWI and Ronald Reagan National Airport.

The trailing 12 months average occupancy was about 65 percent with an average daily room rate of about $146. The resulting revenue per available room, or RevPAR, was $94.90. The capitalization rate, or rate of return, on trailing income was reported as about 7 percent.

The deal, which closed July 19, is the fourth U.S. hotel acquisition for SB&G Hotel Group, which has acquired six hotels worth nearly $1 billion since its launch in 2015. The company's U.S. holdings include hotels in New York City, Dallas and Charlotte, North Carolina.

Marc Magazine and Tom Baker of Savills Studley Hospitality Group represented the selling venture in negotiations.

Please see CoStar Comp #4494323 for more information on the transaction.
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