SALT LAKE CITY, May 12, 2017 /PRNewswire/ -- Laurus Corp., a US based private real estate investment and development firm, announced the $31.38 million sale of the DoubleTree by Hilton Hotel Salt Lake City Airport, achieving a 16% project level IRR and 1.91x equity multiple in just under five years.
Laurus originally purchased the hotel in July 2012 and immediately launched a repositioning program for the asset, which included a rebranding, selection of a new hotel management company, and a comprehensive $5.2 million renovation program. The refurbishment of the 288-room full service hotel included a complete revamp of the guestrooms and public spaces to create a more inviting arrival experience, provide contemporary furnishings, and modernize interior design aesthetics. The landscaping and exterior setting were also enhanced to showcase the property's stunning picturesque scenery.
Over its five-year ownership period, Laurus' asset management team, working in tandem with the management company, was able to increase Net Operating Income by 49.6% over the holding period by leveraging the firm's operations and development expertise to create significant value for the investment.
Salt Lake City is among the top 50 MSAs in the country and has seen rapid population growth since 2000. Commercial activity remains strong and the market unemployment rate ended 2016 at just 2.4%, tops among all U.S. metro areas with at least one million in population. With its strong attraction to employers, abundance of outdoor recreation options and overall quality of life, Salt Lake City earned its ranking as one of U.S. News Ten Best Places to Live.
"This project underscores Laurus' ability to source opportunistic, institutional quality real estate in major markets," said Jean Paul Szita, President of Laurus Corp. "We effectively implemented a complex value-add strategy and delivered projected returns for our investors within our target holding period."
Laurus continues to actively implement its value-add investment strategy on behalf of its stakeholders, and is affiliated with Ethika Investments, a real estate private equity firm, formed to provide investors access to a unique, vertically-integrated platform that tactically invests in opportunistic and value-add assets in the United States.
ABOUT LAURUS CORP.
Laurus Corp. is a real estate investment and development company that specializes in hotels and resorts, office buildings, multifamily and mixed-use properties. With more than $1 billion in assets under management, Laurus employs an entrepreneurial investment strategy designed to consistently achieve attractive risk-adjusted returns by creating capital appreciation opportunities through repositioning, restructuring, re-development and intensive post acquisition asset management. The company was founded in 1999 by Andres and Jean Paul Szita, and is affiliated with Ethika Investments, LLC, a real estate private equity firm.