Acron invests in five-star hotel in Atlanta

The hotel will be managed long-term by Capella Hotel Group and is expected to open in August 2017, Acron says.

The hotel is being built directly next to the Porsche Experience Center, which opened in May 2015. It will also be the first new hotel on the east side of the airport since the opening of the new international terminal and can therefore also be positioned on the market as an airport hotel.

The five-star hotel, designed by HOK Architects and Peter Silling (interior designers), will include 214 rooms (including suites), conference rooms, restaurant, lounge and bar, swimming pool and fitness center, stores and 600 square meters of event space.

The management contract with Capella Hotel Group runs for 25 years plus three options for five years each. The investment volume for the turnkey hotel, including development costs, is expected to be $52 million, according to Acron. The projected market value at the time of completion in 2017 is already 43 percent above development costs, according to the appraisal.

The investment was structured via a Swiss stock corporation whose share capital was placed with private investors as a club deal within six weeks. The projected IRR of the investment is expected to be above 20 percent per annum.

The Porsche Experience Center is a corporate and event location of the automobile manufacturer; it includes the headquarters of Porsche Cars North America with 400 employees as well as a two-kilometer test and race track for an estimated 30,000 visitors per year. An expansion of the racetrack is already in the planning stage due to the good occupancy rate. The corporate campus also includes a technical training center, a classic car restoration facility, exhibition areas, a business center and restaurants. (ah)