ATLANTA—Banyan Investment Group has acquired three Marriott-branded properties in two separate transactions for a combined total of nearly $30 million. The deal brings the hotel investment and management company’s portfolio to 14 owned and operated hotels nationwide.
“We are confident these hotels will meet—and likely exceed—the cash-on-cash returns we insist upon to meet the demands of our investors,” said Andy Chopra, principal and CIO at Banyan Investment Group. “Further, we were able to acquire each at below replacement cost, another plus for our stringent investment criteria. In addition, the long-term franchise affiliation with Marriott will help preserve investment value into the future.”
Banyan Investment Group acquired the following properties as a result of the transactions: the 105-room Fairfield Inn & Suites Chicago St. Charles in St. Charles, IL; the 92-room Fairfield Inn & Suites Chicago Naperville in Naperville, IL; and the 129-room Lansing Courtyard by Marriott in Lansing, MI.
“Naperville, St. Charles and Lansing all meet the strict submarket demand generator criteria we seek when making hotel investment decisions,” Chopra said. “This, combined with favorable acquisition economics and a superior brand like Marriott, helps make us confident that these hotels will continue our standard of exceeding stakeholder expectations.”
While the addition of these properties expands Banyan Investment Group’s portfolio in the Midwest, the company’s portfolio overall is expected to also grow in the coming years. The hotel investment and management company is projecting it will double its portfolio within the next few years.
“While we are constantly re-evaluating and pruning our portfolio of hotels that have met their investment criteria lifespan, we will continue to aggressively pursue deals in markets with high barriers to new entry that can benefit from improved operations, renovation, repositioning and/or rebranding,” he said.