Friedman Capital Pays $60M for D.C. Hotel Near Capitol

A family-owned investment firm has acquired a 153-key hotel in Washington, D.C., for well above its latest assessed value, and less than a year after one of the firm’s former D.C. hotels was transferred to its lender.

An affiliate of D.C.-based Friedman Capital paid $60 million to TPG Real Estate Partners for the Capitol Hill Hotel, at 200 C Street NE, according to the Business Journals, which first reported the news. The deal is a profit for TPG, which acquired the hotel in 2021 for $37.7 million, according to D.C. property records. The hotel’s 2026 assessed value is about $41.7 million. 

The Capitol Hill Hotel, which sits about three blocks southeast of the domed U.S. Capitol, underwent a full renovation in 2014, though further details about the property’s most recent sale were not immediately available. Representatives for Friedman Capital and for TPG did not immediately respond to requests for comment. 

Friedman Capital had previously owned The Line, a 220-key hotel in D.C.’s Adams Morgan neighborhood. But lender Acore Capital acquired ownership of the hotel at foreclosure auction earlier this year after Friedman and its partners failed to repay $86 million in outstanding debt. 

Still, Friedman is not the only firm snatching up D.C. hotels this year, albeit under varied circumstances. Newport Beach, Calif.-based T2 Hospitality purchased Host Hotels & Resorts’ Washington Marriott at Metro Center in September for $128 million. Host Hotels had spent millions renovating the hotel in recent years, though its reasons for selling remain unclear. 

Meanwhile, real estate investment trust DiamondRock Hospitality in February traded the 410-key Westin Washington, D.C. City Center to an undisclosed buyer for $92 million — a bargain compared to the $153 million that the REIT paid for it in 2012. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.