The Hilton Washington DC/North Gaithersburg Hotel has been purchased by a joint venture group that includes VEF Advisors, LLC, a privately owned real estate investment management firm based in Atlanta, Georgia, and Wilton D. (Chick) Hill, President of Davidson Hotel Company, a full-service hospitality company based in Memphis, Tennessee. RockBridge Capital, LLC provided financing Davidson Hotel Company, a full-service company providing management, development, consulting and accounting expertise for the hospitality industry, will manage the hotel as part of the Hilton family of hotels. Davidson will also oversee an immediate $7 million renovation that will touch all aspects of the 301-room, twelve-story hotel located in the I-270 High Tech Corridor of Montgomery County, Maryland.
The scope of work includes architectural enhancements inside and outside and renovation of guestrooms, bathrooms, corridors and public areas. Plans call for a new fitness center, a new lobby, lobby bar and restaurant, and enhanced meeting and ballroom facilities.
The acquisition is the third purchase of a Washington, DC-area hotel by funds managed by VEF Advisors, which in the past ten years has invested in more than $3 billion of real estate through its five closed-end real estate investment funds known as the Value Enhancement Fund Series. VEF is an affiliate of New York-based Apollo Real Estate Advisors, L.P., one of the most active opportunistic real estate investors.
“We look forward to working with Davidson Hotel Company to restore the hotel to its original form,” said Jim Ryan, CEO of VEF Advisors.
The full-service hotel offers an array of amenities to its corporate, government and leisure guests, including high-speed Internet access, state-of-the-art business center, and an indoor/outdoor pool, among others. The four-acre property is located on Perry Parkway in Gaithersburg just off I-270 and MD-355 and is convenient to major airports, shopping, theaters, restaurants and federal agencies, such as the Food and Drug Administration.
“This is an exceptional property for us in a vibrant community with a strong and diverse mix of corporate, government and international commerce,” said Hill. “We view the suburban Washington, DC area as a unique, strong and growing market for opportunity.”