News Summary
T2 Hospitality has successfully acquired the Washington Marriott at Metro Center for $128 million. The transaction encompasses 459 rooms and was financed with a loan of $113.8 million. This acquisition marks T2 Hospitality’s entry into the East Coast market and reflects a significant investment by the Tarsadia Group. The hotel features various amenities and has remained an important location for business travel in Washington, D.C. Despite market challenges, the transaction exemplifies continued activity in the hospitality sector.
Washington, D.C. — T2 Hospitality Purchases Washington Marriott at Metro Center for $128 Million
T2 Hospitality, a firm based in Newport Beach, has acquired the Washington Marriott at Metro Center for $128 million. The transaction, which closed on August 28, 2023, comes to nearly $279,000 per room for the hotel, which features 459 rooms.
The acquisition was financed with a loan of $113.8 million and marks a significant investment by T2 Hospitality, a part of The Tarsadia Group, a family-owned business established in 1976 with assets exceeding $2 billion. The Tarsadia Group operates over a dozen hotels and supports 28 portfolio companies.
The Washington Marriott at Metro Center, located at 775 12th St., NW, is a 15-floor building encompassing 449,479 square feet. Originally constructed in 1989, the hotel underwent renovations in 2013 to update its facilities. The property boasts various amenities, including a 140-seat restaurant, a 10,000-square-foot meeting and banquet space, a fitness center, and a swimming pool.
Background on the Hotel and Previous Ownership
The hotel was initially acquired by Host Hotels & Resorts Inc. in 1994 for $46.5 million, which translates to approximately $101,307 per room. Over the years, the property has remained a pivotal location for visitors and business travelers in the nation’s capital.
Recent trends in the hotel sales market show varying activity in the Washington, D.C., area. Notable transactions around the region include the sale of a Sheraton property in Arlington for $36.3 million, a Hilton Garden Inn in Fairfax for $20 million, and a Residence Inn in Alexandria for $31.3 million. These sales indicate ongoing activities in the hospitality sector despite broader market challenges.
Market Trends and Future Outlook
Analysts are predicting a sluggish hotel market in Washington, D.C., in part due to policy shifts and a notable reduction in midweek business demand. However, some exceptions may exist, particularly with private sector bookings driven by industry trade groups and contractors associated with the Trump Administration. With the reinstatement of return-to-office mandates, there is potential for an uptick in transient business travel and the revival of in-person meetings.
T2 Hospitality has a track record of successful ventures, starting with the acquisition of the Dunes Motel in Anaheim, and has since expanded to complete more than 200 projects. The company’s portfolio is diverse, now including multiple hotels in California, and this purchase represents its entrance into the East Coast market. Alongside the Washington Marriott, T2 has also acquired a 128-room Hilton Garden Inn in Jacksonville, Florida.
Mike Patel, the founder and CEO of T2 Hospitality, brings extensive experience in the hospitality industry to the company’s future endeavors. Host Hotels & Resorts operates 80 hotels across the nation, including five strategically located within D.C.’s central business district. The acquisition of the Washington Marriott at Metro Center is one of the largest hotel transactions in the D.C. area this year, positioning T2 Hospitality for further growth and development in the competitive market.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Orange County Business Journal
- CoStar Group
- Bisnow
- Commercial Observer
- Hotel Investment Today
- Wikipedia: Washington, D.C.
- Google Search: hotel industry trends Washington D.C.
- Google Scholar: Washington D.C. hotel market
- Encyclopedia Britannica: Washington, D.C.
- Google News: Washington D.C. hotel deals
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