Dauntless Capital Partners Acquires Two DC Hotels for $152M
Dauntless Capital Partners has acquired two Washington, D.C., hotels from Douglas Development for $152 million, Commercial Observer has learned.
The hospitality investment firm picked up the 200-key Moxy Washington D.C. Downtown at 1011 K Street for $86 million, and the143-key Courtyard by Marriott Washington, D.C. at 1733 N St. NW for $66 million.
“In developing the Moxy from the ground up and renovating the Courtyard, we were able to exit in a sale and really recognize their full potential,” Norman Jemal, Douglas Development’s managing principal, told Commercial Observer. “Both hotels are under the well-established Marriott brand and in close proximity to one another, which really creates a lot of value. Because we understand it is beneficial for both hotels to be under one owner, selling these properties to Dauntless presented us with the opportunity to monetize on their value in an efficient manner.”
The Moxy was developed by Douglas Development in 2016 and opened in November 2018. Douglas Development acquired The Courtyard by Marriott, which was then a 99-room Kimpton Hotel, in November 2019 and redeveloped the entire property.
Dauntless is a private equity affiliate of Twin Bridges Hospitality, and owns hotels such as the 110-room AC Hotel by Marriott Wailea Maui.
“For Dauntless, the hotels required no maintenance and renovations,” Jemal said. “They are very high-quality assets in a high-barrier-to-entry market.”
With vaccination rates growing and more people traveling lately, the hotel market has been recovering in Washington D.C., as it has been doing in many cities across the country, according to Jemal.
“We really think that 2022 and beyond are going to be spectacular years for the hotel market,” he said.
Newmark (NMRK)’s Miles Spencer, a vice chairman and co-head of lodging, along witu Greg Morgan, a director, represented the seller in the deal, while Dauntless Capital was represented in-house. Requests for comment from the buyer and the brokers were not immediately returned.
Keith Loria can be reached at Kloria@commercialobserver.com.