Sotherly Hotels announced Tuesday that it has acquired Midtown Atlanta's The Georgian Terrace Hotel, which is on the National Register of Historic Places.
The cost for the hotel and an adjacent 698-space parking structure and a 0.6 acre development parcel was $61 million. The 326-room independent, full-service hotel will be managed by Chesapeake Hospitality.
Drew Sims, chief executive officer of Sotherly said in a statement, “The Georgia Terrace Hotel is a significant acquisition for SoTHERLY Hotels. This iconic hotel gives us a landmark property in the second largest MSA in the Southern United States. Atlanta also serves as a primary feeder market to our existing hotel portfolio and therefore it has been a high priority for us. We are pleased to not only enter this market but to acquire a property of this caliber. We believe there is tremendous upside to both the market and the Hotel.”
The Georgian Terrace Hotel, nicknamed the “Grand Dame of Atlanta”, was built in 1911. Located directly across from the “Fabulous” Fox Theatre along Atlanta’s Midtown Mile, it is considered an architectural masterpiece prominently displayed at the intersection of Peachtree and Ponce de Leon Streets.
It played host to the premiere of Gone with the Wind in 1939.
According to the press release from Sotherly Hotels, Midtown is Atlanta’s strongest performing lodging submarket and is benefiting from a surge in development and business activity with strong office leasing trends and several projects currently under construction. Most notably, Emory University’s $225.0 million Proton Cancer Therapy Center is being constructed adjacent to the Georgian Terrace Hotel and is set to open in late 2015.
The hotel features guest rooms averaging over 800 square feet each, the largest in the market, over 16,000 square feet of flexible meeting space, and three food and beverage outlets. The hotel was modernized in 1991 with the addition of a new tower.
Since 2009, over $15 million has been invested in the Georgian Terrace to renovate the guest rooms and public spaces in order to position the property as “Atlanta’s Modern Classic”. The hotel is a member of Preferred Hotels Group, Historic Hotels of America.