One Washington Circle Hotel Changes Hands in $49M Deal
Electra America plans $30 million renovation and AKA rebrand
The price was $49 million, according to someone close to the deal.
The new owners, who go by Electra America Hospitality Group, are planning a $30 million renovation and will reopen the Foggy Bottom hotel in the summer of 2023, according to the joint venture. A new name for the hotel will be shared closer to opening, though it will be an AKA-branded property.
“This was an excellent opportunity to acquire a hotel asset in need of renovation in a high barrier to entry market that will enjoy substantial growth as a result of multiple demand drivers, including proximity to large, prestigious academic institutions, governmental agencies and a litany of D.C. tourism attractions,” Russ Urban, Electra America Hospitality Group’s CEO, said.
The hotel is at 1 Washington Circle, just blocks from George Washington University, George Washington University Hospital and the World Bank. It was built in 1964 and last renovated in 2003.
“This property also complements AKA’s growing presence in the Washington, D.C., metro market, allowing AKA to capitalize on efficiencies derived from economy of scale while planting a flag in one of the city’s most exciting districts,” Urban said, citing Hotel AKA Alexandria, opening later this year, and AKA White House, which has been in the District for a decade.
The nine-story property’s 152 suites average 480 square feet, and the hotel offers a ground-floor restaurant, a 3,300-square-foot meeting room, a fitness center, a business center and a small outdoor pool.
“We are pleased by the successful completion of this transaction,” said Bruno Fernandes, vice president of finance and treasurer of George Washington University. “The proceeds from the sale of 1 Washington Circle will be used to support the academic mission of the university.”
Marc Magazine, executive managing director, hospitality at Savills, represented the seller in the deal.
Keith Loria can be reached at Kloria@commercialobserver.com.