Scottsdale, AZ – Arriba Capital recently secured a $40.7MM ground-up construction loan for a 194-key, dual-branded Marriott Fairfield Inn & Suites and Towneplace Suites. The hotel will be 7-stories on top of a 220-space, 5-story parking deck. The non-recourse loan was leveraged to 78% of the total project cost with a 2-year term and three 6 month extension options.
TownePlace Suites is Marriott’s extended-stay brand in the upper-moderate tier, designed to appeal to business and leisure travelers who stay for four nights or more. Each suite provides functional space for living and working. Fairfield Inn & Suites is Marriott’s primary economy brand in what Marriott classifies as the moderate‐tier segment. By offering both brands in the same hotel, the borrower will cater to a larger demographic and save on expenses. Amenities will include a market pantry, meeting space, fitness room, and business center. The two hotels will share a common front‐of‐the‐house area including registration, breakfast area, and fitness room. Back‐of‐the‐house elements will also be shared including laundry, maintenance area, and mechanical/electrical.
The property is located in Midtown Atlanta directly across the street from Emory University Hospital and walking distance to major attractions such as World of Coca-Cola, Georgia Aquarium, Fox Theatre, College Football Hall of Fame, Centennial Olympic Park, Phillips Arena, Georgia Dome, the new $1.5-billion Mercedes Benz Dome, Georgia Tech University, Underground Atlanta, National Center for Civil and Human Rights, CNN Center, and Georgia World Congress Center. The property is located in close proximity to numerous restaurants and shopping. Furthermore, major sporting events scheduled to be held in Atlanta; such as the Super Bowl (2019), the NCAA College Football Championship (2020), and the NCAA Final Four (2020), will all draw high levels of demand.
The borrower is a privately held hospitality management and development company that currently owns and operates 22 premium-branded hotels in the Southeast.