Real estate investment firm 2GR Equity LLC of Grapevine has formed a joint venture with San Antonio-based hotel developer/operator Phoenix Hospitality Group to build a five-story, 138-room Hilton Garden Inn in Live Oak, near San Antonio. The new hotel will include an attached 12,000-square-foot conference center housing an 8,000-square-foot conference center. The future Hilton Garden Inn will be located in the southwest quadrant of Interstate-35 and Loop 1604 off of Pat Booker Road directly across from the Forum at Olympia Parkway, one of the largest shopping centers in Texas.
The venture is a public/private partnership with the city of Live Oak. In addition to a grant from the city to help subsidize the construction cost of the property, the city is entering into a new, 20-year lease for the conference center, which includes an abatement of hotel occupancy taxes. PHG will be responsible for overseeing the development of the hotel as well as the full-time management duties. PHG has successfully managed 23 hotel properties and developed and/or renovated 15 hotels consisting of all major hospitality brands. The three most recently completed projects by PHG were all Hilton branded properties located in the San Antonio market.
This is the first hospitality investment made by 2GR Equity and its 14th transaction since its founding in 2011. “Statewide, Hilton Garden Inns continually outperform their full service hotel competitors in the mid/upscale brand segment. With the benefit of a great location and excellent visibility from two major thoroughfares, we believe this hotel is poised for great things in the strengthening hospitality market,” said 2GR Equity Principal and co-founder Isaac Gregory. “And with the addition of the public/private partnership, this is the best hotel development opportunity we have seen in years.” 2GR Equity has now provided joint venture equity on commercial real estate transactions representing approximately $118 million in total capitalization.
Betty Dillard bdillard@bizpress.net