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Location:
Washington, DC
Date of Acquisition:
October 7, 2005
Seller:
Goldman, Sachs and Highgate Holdings
Primary Focus:
Asset management and construction management
Capital Projects for 2005 and 2006:
$25 million
In October 2005, a joint venture of Northview Hotel Group and a fund managed by Westbrook Real Estate Partners acquired the Wyndham City Center, D.C. from a partnership of Goldman, Sachs & Co. and Highgate Holdings. The 355-key hotel had been managed by Interstate Hotel Company since March 2005, and previously by Wyndham Hotels & Resorts.
Northview Hotel Group was responsible for negotiating a management contract with Marriott International under which the hotel is now managed by Marriott International as a Renaissance Hotel. Under the terms of the management contract, Northview Hotel Group oversaw a $25 million renovation of the hotel, including a full guestroom remodel, major upgrade to the façade and the public areas, the addition of a new bar and an ILLY Café, plus a full renovation of the hotel’s MEP systems.
The design team included Gensler for architecture and interior design, Shalom Baranes for the exterior design and Studio 1200 for project coordination. The hotel was officially flagged as the Renaissance M Street Hotel in March 2007.
Northview Hotel Group also spearheaded the effort to secure entitlements allowing for the addition of two floors of hotel rooms on top of the existing roof of the property, through a height variance from 90’-110’. On March 22, 2007, the DC Zoning Commission voted in the majority to allow for the proposed height amendment.
Original debt financing for the hotel was provided by Credit Suisse First Boston. In October 2006, Northview oversaw the refinancing of the debt with CSFB, which resulted in a return of the majority of capital to the venture partners. In February 2008, the hotel was sold to a European investment group, generating an attractive return to the venture.
