Laurus Corp. Spearheads Sale of Hilton Garden Inn Philadelphia / Ft. Washington
Successfully achieving target returns for Ethika Diversified Opportunity Real Estate Fund, L.P.
PHILADELPHIA, May 19, 2017 /PRNewswire/ -- Laurus Corp., a U.S.-based private real estate investment and development firm, has completed the $22.5 million sale of the award-winning Hilton Garden Inn located in Fort Washington, Pennsylvania leading the asset to achieve a 20.1% gross IRR and 1.9x gross equity multiple in under four years.
Laurus acted as sponsor on behalf of Ethika Diversified Opportunity Real Estate Fund, L.P. Immediately following the acquisition of the hotel in 2013, Laurus implemented its value-add strategy to further position the asset as a leader in its submarket. The strategy included executing a targeted $2.5 million renovation plan which included a complete refresh of the lobby and outdoor seating areas as well as significant enhancements to the guest rooms to allow the property to be more competitive in penetrating the leisure market. Laurus, as sponsor, also selected a new management company, tasking it with staying laser focused on guest satisfaction and revenue management.
The value-add strategy implemented at the hotel improved ADR penetration, operating margins and guest survey scores, and the property received several accolades and awards under the stewardship of Laurus, including Trip Advisor's Certificate of Excellence 2013, 2014, 2015 and Aimbridge Hospitality's Presidential Award for RevPAR Growth 2013, 2014, 2015. Strategically located adjacent to the Fort Washington Office Park the Hotel benefits from nearly 6 million square feet of Class-A office space. Within close proximity of Downtown Philadelphia, the Fort Washington is ideally situated along major thoroughfares, and is comprised of numerous corporate demand generators. These include regional and national corporations situated in office parks including Fort Washington Office Park, Willow Grove Office Park, and Metroplex Corporate Center in Plymouth Meeting. Fort Washington also benefits as a suburb of Philadelphia. Home to seven Fortune 1000 companies, the city has a total gross metropolitan product of over $350 billion with its main economic sectors focused on industries such as information technology, manufacturing, oil refineries, food processing, healthcare financial services and tourism.
"The successful sale of this hotel, the second disposition for Laurus-sponsored assets within the past two weeks, continues to highlight our consistent ability to source, execute and monetize on opportunistic and value added real estate investments," said Andres Szita, Chairman. "As always, we carefully evaluate each project and define a custom strategy for each property, aiming at delivering the best possible risk-adjusted outcomes."
ABOUT LAURUS CORP.
Laurus Corp. is a real estate investment and development company that specializes in hotels and resorts, office buildings, multifamily and mixed-use properties and continues to implement its value-add strategy on behalf of its stakeholders. With more than $1.2 billion in assets under management, Laurus employs an entrepreneurial investment strategy designed to consistently achieve attractive risk-adjusted returns by creating capital appreciation opportunities through repositioning, restructuring, re-development and intensive post acquisition asset management. The company was founded in 1999 by Andres and Jean Paul Szita, and is affiliated with Ethika Investments, LLC, a real estate private equity firm.
This press release does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. This press release, together with other statements and information publicly disseminated by the Company, may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements.
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