AWH Partners acquired a 212-key, dual-branded Residence Inn and Fairfield Inn & Suites hotel property in Broomfield, Colo. Other terms and conditions were not disclosed.
The hotel will now be managed by Spire Hospitality, a Dallas-based hospitality management firm that is a subsidiary of AWH Partners. Located between Denver and Boulder, Broomfield is one of Colorado's fastest-growing communities, largely a result of growth from the aerospace, energy, life sciences and technology industries.
"This acquisition is AWH Partner's most recent investment resulting from our proprietary, best-in-class technology and data platform that will be central to the strategic expansion of our portfolio," Managing Partner Chad Cooley said in a statement. "The platform analyzes third-party and proprietary data to determine transactions that have optimal risk-reward balance for investing and is the linchpin of our strategy to lead a new era in hospitality real estate investment."
The acquisition price of $137,000 per key is a substantial discount to replacement cost for a high-quality asset under two of Marriott's strongest brands. The investment has robust, risk-adjusted returns with a 9.5 percent going-in cap rate for a recently built, well-branded asset in a growth market, according to the company. The property's strong and steady historical cash flows and competitively priced long-term fixed rate financing auger exceptional returns, according to the firm's analysis.
Over the past 20 years, the aerospace industry has grown by 88 percent in the greater Denver-Boulder area, according to a CNBC analysis. CBRE ranks Denver-Boulder as a leading U.S. life sciences real estate market, driven by unprecedented public and private investment. Located near the Interlocken Business Park, the dual-destination property offers extended-stay suites with kitchens, guest rooms, hotel bar, buffet and to-go dining, and complete conference and corporate event facilities. The hotel is within walking distance of Broomfield's mixed-use Flatiron Crossing complex as well as the Interlocken Golf Club. The main campus of the University of Colorado Boulder is 15 minutes away.