Noble Investment Group today announced the acquisition of four Residence Inn by Marriott hotels within the greater Cleveland, Ohio metro area. The assets are prominently located in downtown Cleveland, Beachwood, Mentor and Independence. Each hotel will undergo a comprehensive renovation in order to significantly enhance the guest experience.
The 29th most populous metro in the United States, Cleveland's ascension as a global leader in healthcare, biomedical engineering and technology has resulted in substantial new corporate growth throughout the area in addition to investments in medicine and infrastructure. Eight Fortune 500 companies are headquartered in the greater Cleveland area, including Eaton Corporation, Progressive, Parker Hannifin, Sherwin-Williams, TravelCenters of America, Aleris, and KeyCorp. The Cleveland Clinic, the area's top employer, is widely regarded as the best cardiology and heart surgery center in the country. The clinic's neighbors include the University Hospitals Case Medical Center, the MetroHealth System, and Case Western Reserve University. Opened in June of 2013, the $465-million Global Center for Health Innovation in Downtown Cleveland showcases innovations in healthcare and biomedical technology and offers substantial meeting and exhibition space to host large-scale conventions.
Downtown Cleveland, the central business district of Northeast Ohio, is the headquarters to Cohen & Company and Alexander Mann's U.S. division, as well as home to the regional offices of PNC Financial Services and First National Bank. Beachwood and Mentor are two affluent communities to the east. Beachwood is the corporate headquarters for firms such as Developers Diversified Realty Corporation, Aleris, TOA Technologies and Eaton Corporation. Mentor is home to a large concentration of biomedical firms including U.S. Endoscopy and Advanced BioSensors, Inc and was named to Smart Money's Best Places to Retire. Independence, also proximate to downtown Cleveland and the Cleveland Hopkins International Airport, is home to the Rockside Road Business Corridor with more than 1,300 businesses and has more office space than any other area outside of downtown Cleveland.
"Given the robust demand growth in the Cleveland MSA, Noble believes there is significant opportunity to maximize asset performance with renovations targeted towards enhancing the guest experience. With a going-in cap rate of approximately 11.5% on trailing 12 month income, this portfolio represents an attractive combination of in-place yield, considerable income upside and a basis that is well below replacement cost," said Noble principal, Ben Brunt.
The Residence Inn by Marriott brand is a top choice for guests seeking affordable, upscale accommodations when travelling for an extended stay. The properties feature large suites with full kitchens and offer complimentary hot breakfast, Wi-Fi and grocery delivery service.
Founded in 1993, the Noble organization specializes in making value-added, opportunistic investments in the lodging and hospitality real estate sector. Through its private equity real estate funds, Noble has invested more than $2.5 billion throughout the United States in primarily select service and extended stay hotels which are affiliated with premium brands by Marriott, Hyatt, Hilton and Starwood.
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