Fairwood Capital, LLC, a real estate investment firm focusing on hospitality assets, today announced the acquisition of the 144-room Hampton Inn & Suites Memphis Beale Street for an undisclosed amount from Peabody Place Hotel Company. Peabody Hotel Group, the current operators of the property, will continue to manage the hotel for Fairwood. It is the second hotel acquired by Fairwood in the past two months.
“This acquisition reflects our strategy to acquire institutional grade, premium-branded, select-service and full-service hotels that are brand, market-segment and geographically diversified,” said Robert Solmson, Fairwood founder and president. “The Hampton Inn & Suites Memphis Beale Street consistently has ranked as one of the top hotels in the Hampton Inn system, and we believe it is the highest quality select-service asset in the city. Peabody Hotel Group has done an exceptional job operating the hotel, and we look forward to building on our relationship with them.”
Located at 175 Peabody Place, the seven-story hotel is located in the center of the downtown business and entertainment district. Situated between the Peabody Hotel and Beale Street, Memphis’ main downtown entertainment attraction, the Hampton Inn & Suites, has considerable barriers to new competition. The hotel opened in 2000 and completed a major renovation in 2007.
“We have considerable capital available for investment and have an aggressive appetite for acquisitions, including single assets, portfolios, distressed debt and restructuring opportunities,” Solmson said. “Currently, the number of hotels for sale remains low, which is typical in this phase of the real estate cycle. However, our pipeline continues to expand, and we expect our investment activity to increase significantly over the next several years.”
Fairwood was represented by the Memphis office of Wyatt, Tarrant & Combs, LLP.