A pair of high-profile hotels in the North Hills district in Raleigh have been sold to an Atlanta investment group for a combined $86.3 million.
The Noble Investment Group, which has an office in downtown Raleigh, purchased the Renaissance Raleigh North Hills Hotel for $57.7 million and the Hyatt House Raleigh North Hills hotel for $28.6 million, according to Wake County deeds filed in August. The deal was part of a larger acquisition streak that saw Noble acquire more than a dozen hotels with plans to enhance the properties.
Built in 2008, the 229-unit Renaissance, a Marriott (Nasdaq: MAR) brand hotel, was sold by the Abu Dhabi Investment Authority of the United Arab Emirates, which had purchased the property for nearly $78 million in 2015 from the original owner and development partnership of Kane Realty Corp. and Concord Hospitality Enterprise of Raleigh.
Built in 2012, the 137-unit Hyatt House (NYSE: H) was also sold by the Abu Dhabi Investment Authority, which had purchased the property for $23 million in 2015 from the same Kane-Concord partnership.
Kane and Concord also joined forces to build a third hotel in the North Hills development – the AC Hotel by Marriott Raleigh North Hills, which sold in 2020.
The North Hills Main District off Six Forks Road is currently undergoing major construction has Kane Realty redevelopments the popular shopping and entertainment district.
The 116,074-square-foot Hyatt House Raleigh North Hills building, located on 1.15-acres at 160 Park at North Hill St., has most recently been assessed at $28 million.
Meanwhile, the 194,286-square foot Renaissance Raleigh North Hills Hotel, located on 1.45-acres at 4100 Main at North Hills St., has been assessed at nearly $73 million. Room rates are around $270 a night for a standard room. The hotel is next to the site of the former JCPenney store in North Hills where Kane is currently building two new buildings.
The two hotels are just a few hundred yards away from each other on either side of Six Forks Road.
The seller, the Abu Dhabi Investment Authority, is a government-owned investment organization that manages the wealth fund for Abu Dhabi, United Arab Emirates. ADIA is the largest sovereign wealth fund in the Middle East and the third largest in the world with $708.75 billion in assets, the Sovereign Wealth Fund Institute reports.
The buyer, Noble Investment Group, is led by founder and chief executive officer Mit Shah, who graduated with an economics degree from Wake Forest University. He is currently the chairman of the Wake Forest Board of Trustees investment committee.
A real estate investment manager, Noble specializes in the hospitality and travel sector. In August, Noble announced that it had acquired 14 Marriott, Hilton (NYSE: HLT) and Hyatt assets – including the North Hills properties. The company says it will invest in physical enhancements across the portfolio while optimizing operations to drive market share and increase profitability.
“The acquisition of these premium-branded hotels is consistent with our strategy to invest in well-located assets in high-growth markets with healthy business and leisure demand,” said Ben Brunt, chief investment officer for Noble. “Since the second quarter of last year, Noble has invested more than $1.5 billion across the United States in 40 hotels with approximately 6,000 rooms as we continue to capitalize on the thematic opportunity in travel and hospitality,” Shah said in August.
Over three decades in business, Noble has invested more than $5 billion in high-growth markets with healthy business and leisure demand.
© 2022 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated January 1, 2021) and Privacy Policy and Cookie Statement (updated July 1, 2022). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.
About Author
