PHILADELPHIA, Jan. 19, 2017 — Ayer Capital Advisors ("Ayer"), an investment firm, The Wankawala Organization ("TWO"), a hotel owner and management firm, and Ashwin Pandya, financial services firm, are pleased to announce the acquisition of a 155-room Holiday Inn Express & Suites in King of Prussia, Pennsylvania. The Hotel benefits from its strategic positioning near the convergence of four major thoroughfares, I-76, I-276 (Philadelphia Turnpike), US 422, and US 202, which provides convenient access to Philadelphia's central business district, the capital region's extensive highway network, and a variety of regional demand generators. The Hotel is situated just minutes from Valley Forge National Park, Valley Forge Convention Center, and King of Prussia Mall, the largest enclosed shopping mall in the county and a popular tourist attraction. It has a desirable select service brand (part of Intercontinental Hotels Group) with strong in-place cash flows and superior market share penetration.
Key Facts:
Key Investment Highlights
- Institutional-quality, premium-branded select-service The hotel features 155 recently renovated guestrooms with a long term franchise agreement with IHG
- Excellent location in an established market: The Hotel benefits from its proximity to Valley Forge National Park, Valley Forge Convention Center, and the King of Prussia Mall, the largest enclosed shopping mall in North America
- Recently Renovated Asset: The Hotel is in excellent condition, having completed more than $2.3 million in comprehensive capital improvements in August 2015
- Proven attractive income producing asset: The hotel was acquired with an attractive income yield based on trailing revenues. The hotel has diverse demand generators – corporate, leisure and group segments
- Proposed Rail Link to Philadelphia: Proposed extension of the Norristown High Speed Line could spur continued economic growth and solidify King of Prussia as the largest employment center in the metro excluding Philadelphia's central business district
The current portfolio owned and managed by the group includes eleven select service hotels with a total of over 1,200 rooms. Ashwin Pandya, Ayer and TWO plan to add over $200 million worth of premium brand select service hotels in the next two years. "We are excited to expand the hospitality investment platform with TWO to source, acquire and manage premium branded hotel investments," according to Venkateshwaran Raja and Ashwin Pandya and, managing partners of Ayer Capital Advisors. "The addition of this asset enhances our portfolio and long term strategy we have put in place. The company continues to execute on its long-term plan of establishing itself as one of the premier owner and manager of high quality select service hotels in the mid Atlantic region," said Mihir Wankawala of TWO.
