San Francisco-based The Axton Group has invested $70m (€58m) to buy the Renaissance Austin Hotel in Texas.
The value-add and opportunistic real estate investment manager said the amount paid for the 492-room hotel in north Austin represents more than a 50% discount to replacement cost.
Axton said it plans to upgrade the public areas and meeting rooms of the hotel which will continue to be managed by Marriott under the Renaissance Brand.
Peter Oberndorf, founder and CEO of Axton, said: “This investment is representative of the cyclical nature of hotel assets, which have been even more acutely impacted in this current environment than previous economic cycles given the dynamics of the pandemic.
“It is now our responsibility to reposition and enhance this property, guiding it on a path of recovery and ultimately leaving it in a better place than we entered. We look forward to making this vision a reality.
“We are seeking additional opportunities where we believe we can acquire assets and add value at an attractive entry basis, in robust markets with excellent long-term fundamentals and promising growth prospects.”
Andrew Slusser, principal at Axton, said: “Our purchase of the Renaissance Austin Hotel reflects the reduced capital availability in the hospitality industry. We see great value at our point of entry and expect the property to return to and grow its pre-COVID earnings over the coming years.”
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