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Songy Highroads Partners with Hyatt on New Hyatt Place Hotel Near Mercedes-Benz Stadium

Hometown Developer Pays $5 Million for Two Downtown Downtown Atlanta Parcels
November 30, 2017
Songy Highroads and Hyatt Hotels Corp. will commence construction next year on a new 175-key Hyatt Place near the expanding sports and entertainment district in downtown Atlanta.

Atlanta-based Songy Highroads (SHR) closed Nov. 1 on the acquisition of the parcels at 300 Luckie St. and 306 Luckie St. for a combined price of $5 million, according to CoStar Research. The new owners filed an application with the city of Atlanta to consolidate the properties to create one that will house the new Hyatt Place. The hotel will be 12 stories and stand 160 feet tall.

Hyatt Hotels is SHR's 50% partner in the joint venture that will fund and develop the new hotel, said David Songy, CEO of Songy Highroads. The partnership already has lined up the debt portion of its capital stack and finalized terms with the undisclosed lender.

The site at Luckie and Latimer streets is adjacent to the Georgia Aquarium and a block away from Centennial Olympic Park. It is a short walk to Mercedes-Benz Stadium, CNN Center and Philips Arena.

Songy Highroads will raze the two-story circa 1950 office building currently on the site to make room for the new Hyatt Place.

Demand for hotel rooms in the tourist core of downtown Atlanta is expanding and a key reason Songy Highroads and Hyatt Hotels will move forward, Songy said. He enumerated several new developments that already are or will create further demand: Mercedes-Benz Stadium, National Center for Civil & Human Rights, the National College Football Hall of Fame, the new location for the World of Coca-Cola and the $25 million renovation of Centennial Olympic Park.

Mercedes-Benz Stadium, home to the Atlanta Falcons and perhaps even more popular Atlanta United FC, opened earlier this year and has propelled new development around it. In late February, Hard Rock International broke ground on the 220-room Hard Rock Hotel Atlanta near Mercedes-Benz Stadium. It will be part of Bolton Atlanta LP's Castleberry Park mixed-use development that also will comprise residential units and retail space.

Last week, the Georgia World Congress Center imploded the Georgia Dome and announced plans to develop a 1,010-room convention center hotel and a 13-acre park for tailgating and community events on the site.

The outlook for Atlanta's hotel market - especially the select-service tier that Hyatt Place fits into - is solid, according to a new report from CBRE Hotels.

"Leading the way in 2017 RevPAR growth is the lower-priced segment of Atlanta," the CBRE Hotels reports says. "The properties in this category are forecast to attain a 4.8% gain in ADR (average daily rate) and see a 0.3% increase in occupancy, resulting in a 5.1% RevPAR increase. Upper-priced hotels should see a 2.1% increase in ADR and 2.0% jump in revenue per available room.

Please refer to CoStar Comp # 4046023 for additional information on this sale.

Tony Wilbert, Atlanta Market Reporter  CoStar Group   
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