ATLANTA--(BUSINESS WIRE)--Pellerin Real Estate has acquired the former Ramada Plaza by Wyndham Atlanta Downtown & Conference Center, a prominently-located 375-key full-service hotel in Atlanta’s Summerhill neighborhood. Pellerin has partnered with Life House through its Life Hospitality independent management arm to stabilize operations and explore redevelopment opportunities as the neighborhood continues to evolve. Together, the partnership seeks to grow its hotel portfolio by at least 1,000 additional keys by acquiring midscale hotels in Sun Belt states over the next 12-month period.
Pellerin’s first hotel project is extremely well-located in downtown Atlanta adjacent to Georgia State Stadium, which was transformed from Turner Field of the Atlanta Braves as part of a $53M project that completed in 2018. The location will also benefit from its proximity to the new $750 million Summerhill Development, an 80-acre mixed-use project led by Carter Developments and Georgia State University that is already underway. Phase I of the Summerhill development will encompass 306 multifamily apartments with 8,575 SF of ground-level retail, 82,000 SF of grocery-anchored retail, the redevelopment of 47,000 SF along Georgia Avenue, a 676-bed student housing project, 100 townhomes and build-to-suit Class A office space. Additionally, Georgia State recently announced a new $85 million, 8,000-seat athletic arena which will be directly across the street from the hotel and is expected to deliver in 2022.
“The expansive 206,000 SF property represents an opportunity for Pellerin to play a fundamental role in the evolution of the Summerhill neighborhood,” expressed Philippe Pellerin, founder & CEO of Pellerin Real Estate. “Through a community-sensitive approach, we will leverage our team’s deep familiarity with the hotel’s location to deliver a redevelopment that will be massively beneficial to preserving the history of Summerhill.”
With full discretion over its capital and the ability to close sizeable transactions quickly, Pellerin is well-positioned to target distressed assets and special situations where an accelerated due diligence period and closing timeline is required by the seller. Moving forward, Pellerin’s strategy will target existing 100 - 300 key midscale hotels in locations with attractive pre-Covid dynamics that are available below replacement cost, with priority markets including Atlanta, GA, Dallas, TX, Jacksonville, FL, and Orlando, FL.
“We have been impressed by Life House and their seasoned team, which moved seamlessly in fewer than 20 days to support Pellerin with closing and transitioning day-to-day operations of our first hotel deal,” said Pellerin. “We are excited to expand our partnership with Life House as distressed opportunities continue to arise in our target markets over the coming months.”
Life House was founded in 2017 by luxury hotel veterans and has rebuilt the complex hotel tech stack from the ground up to create a completely new operational model that allows them to maximize profitability for independent hotel owners. The company is backed by top travel-tech investors, including Thayer Ventures, JLL Spark, Tiger Global, and Ashton Kutcher & Guy Oseary’s Sound Ventures, among others.
This deal continues a strong growth trajectory for Life House in the region, which announced earlier this year that it had executed an agreement to manage the historic 131-key hotel in the Southside Historic district of Chattanooga, TN. While that hotel is presently being operated as an independent property, its local owner are preparing to complete a renovation into a 4-star boutique hotel under the rapidly growing Life House brand.
"We’re excited to partner with Pellerin Real Estate on this regionally-focused investment strategy," said Bryan Dunn, Head of Growth at Life House. “While we initially focused on smaller boutique properties, we have proven our ability to drive similar value creation for owners of large independents and look forward to building out a sizable portfolio with Philippe and his team across the Sun Belt region.”
About Life House
Life House is a New York-based, venture-backed and vertically-integrated hotel brand, management, and software company. Life House has built a proprietary technology stack to power a platform that makes hotels more seamless and more profitable for hotel owners and travel more meaningful and more accessible for travelers. Life House operates and brands 4-star hotels, and operates independent hotels under its Life Hospitality management platform. www.lifehousehotels.com
About Pellerin Real Estate
Pellerin Real Estate is a vertically-integrated real estate development company that has been leading Atlanta’s progressive change for urban dwellers since 2011. Founded by Philippe Pellerin, the Atlanta-based firm develops lifestyle spaces not just for the sake of existing, but for enabling local Atlantans to thrive. With a community-sensitive approach, Pellerin Real Estate has enhanced the city of Atlanta with 15+ completed projects and many more on the way.