NEW YORK—A partnership led by Square Mile Capital Management LLC (Square Mile) has completed the turnaround of the W Hotel Atlanta Downtown by selling it to Ashford Hospitality Trust.
The 237-room hotel, which was acquired via deed in lieu of foreclosure in 2010, was sold for approximately $240,000 per room.
A centerpiece of Atlanta’s Allen Plaza mixed-use complex, the hotel opened in January 2009, while the local hospitality market was suffering the severe impact of the U.S. economic recession. Debt on the property had been originated by a subsidiary of locally-based Silverton Bank, which failed a few months later. The Federal Deposit Insurance Corporation (FDIC), which assumed control of Silverton’s assets, then assembled a package of 57 Silverton hotel loans and sold a 40% stake to Square Mile in 2010, thereby forming the partnership that subsequently took possession of the W.
According to Square Mile, by the time of the sale, net operating income had tripled, as average occupancy reached 73% and the average daily room rate grew to over $200.