Dual-Branded Marriott Hotel Slated for Dallas
Dallas—Construction financing has closed for a dual-branded Marriott hotel to be built adjacent to The Galleria Dallas, with completion in spring 2018, it was announced recently by Civitas Capital Group and Atlantic Hotels Group, the hotel’s owner/developer.
The 256-key AC by Marriott Dallas North and Residence Inn by Dallas North reportedly is within a 1-mile radius of more than 11.5 million square feet of office space and will anchor the Dallas Midtown Redevelopment, a new $3.5 billion mixed-use development containing 6.5 million square feet of office tower space; 9,000 residential units; 1 million square feet of retail, restaurants and entertainment space; and an 18-acre park.
The property “will bring new options to the Midtown lodging market by offering travelers the choice of two distinct brands in close proximity to the Galleria Mall and the LBJ Freeway corridor,” Perry Molubhoy, CEO of Atlantic Hotels Group, said in a prepared statement. “With the highest occupancy level of all Marriott brands, Residence Inn brings the quality and comfort to extended-stay upscale travelers, while AC is designed to meet the needs of design-conscious travelers with its unique blend of quality, comfort, design and technology, yet with an approachable rate.”
Financials on the hotel were not disclosed.
The two hotels will have separate entrances and separate guest rooms, 140 in the AC and 116 in the Residence Inn, but will share a pool, meeting space, a bar and the back of the house, Molubhoy told Commercial Property Executive.
The dual-branding strategy allows a hotel operator to achieve economies of scale, including sharing management, housekeeping and other staff, Caroline Perel, managing director for Civitas Capital Group, said in the announcement. “The amenities are servicing two hotels at the same time, which makes it more cost effective. On the customer-facing front end, you’re allowing different price points and attracting different customers into the same property.”
This approach also, according to the developers, facilitates Civitas’ ability to attract foreign direct investment on both EB-5 loan and traditional equity. Civitas’ equity partner, JD Capital, is a leading private equity company in China.
5G Studio Collaborative is the architect, Simmons Bank is the senior lender, Clark Contractors is the general contractor and Dowdle Real Estate was the land broker. The hotel will be managed by an affiliate of Atlantic.
The project is one of several joint hotel projects between Civitas and Atlantic within the DFW Metroplex. The others, all currently under construction and set for delivery in 2017, are the Aloft and Element Dallas Love Field and Residence Inn Dallas Canyons in Dallas and a SpringHill Suites and a Home2 Suites in McKinney, according to Molubhoy.