PHILADELPHIA—Private real estate investment and development firm Laurus Corp. has completed the $22.5 million sale of the Hilton Garden Inn located in Fort Washington, PA. The move will lead the asset to achieve a 20.1% gross IRR and 1.9x gross equity multiple in less than four years, according to the company.
Laurus acted as sponsor on behalf of Ethika Diversified Opportunity Real Estate Fund L.P. Immediately following the acquisition of the hotel in 2013, Laurus implemented its value-add strategy to further position the asset as a leader in its submarket. The strategy included executing a targeted $2.5-million renovation plan, which included a complete refresh of the lobby and outdoor seating areas as well as significant enhancements to the guestrooms. Laurus, as sponsor, also selected a new management company, tasking it with staying focused on guest satisfaction and revenue management. The value-add strategy implemented at the hotel improved ADR penetration, operating margins and guest survey scores, according to the company.
Strategically located adjacent to the Ft. Washington Office Park the hotel has nearly six million sq. ft. of Class-A office space. Within close proximity of downtown Philadelphia, the Ft. Washington area is close to major thoroughfares and corporate demand generators.