The 129-room EVEN Hotel in Norwalk, Connecticut, has been sold to V2 Capital Management, a Westport-based real estate investment firm. The transaction was announced by Hunter Hotel Advisors, which facilitated the deal on behalf of the seller, 6R Capital Group. The sale follows a significant two-year renovation project by the previous owner.
Key Takeaways
- The 129-room EVEN Hotel Norwalk has been acquired by V2 Capital Management.
- The seller, 6R Capital Group, recently completed a comprehensive property improvement plan.
- The hotel is strategically located adjacent to the Merritt 7 Corporate Park.
- New ownership is expected to invest in further capital improvements to enhance the property's value and competitive standing.
Details of the Transaction
A significant hotel property in Norwalk has changed hands. V2 Capital Management, a real estate investment firm based in nearby Westport, is the new owner of the EVEN Hotel Norwalk. The seller was 6R Capital Group, a privately held real estate firm headquartered in Manhattan.
The sale was officially announced on Wednesday by Hunter Hotel Advisors, the firm that represented 6R Capital in the deal. While the financial terms of the transaction were not disclosed, the acquisition marks a strategic move for V2 Capital Management within the local Connecticut market.
The hotel's location is a key aspect of its value, situated directly next to the Merritt 7 Corporate Park, a major business hub in the area. This proximity makes it a convenient option for corporate travelers and visitors to the numerous companies based in the park.
A Strategic Location
The Merritt 7 Corporate Park is one of Fairfield County's largest office parks, hosting a diverse range of tenants. Hotels located adjacent to such business centers often benefit from consistent weekday occupancy rates driven by corporate travel, meetings, and events.
Seller's Value-Add Strategy
For 6R Capital Group, the sale represents the successful conclusion of a strategic repositioning effort. According to Shai Shamir, co-founder and managing partner of the firm, the property was initially acquired as part of a larger portfolio.
Over the last two years, 6R Capital undertook an extensive property improvement plan (PIP). This renovation was designed to refresh the hotel and bring it in line with the latest brand standards for EVEN Hotels, an IHG Hotels & Resorts brand focused on wellness.
"This successful transaction reflects our strategy of identifying opportunities, creating value through repositioning and ultimately delivering strong results for our partners," said Shai Shamir in a statement.
The completion of the PIP has modernized the facility, making it a more attractive asset for a new owner looking to capitalize on its updated features and prime location.
Future Potential and Market Position
The new ownership, V2 Capital Management, is positioned to build upon the recent upgrades. Spencer Davidson, senior vice president for Hunter Hotel Advisors, highlighted the property's long-term growth prospects.
Davidson described the Norwalk market as having high barriers to entry, which typically means it is difficult for new competitors to develop similar properties due to factors like land scarcity, zoning regulations, or high costs. This market condition can protect the value of existing assets.
High Barrier-to-Entry Markets
In real estate, a market with high barriers to entry limits new supply. This often leads to stronger, more stable performance for existing properties, as they face less competition. For hotel investors, this is a highly desirable characteristic.
According to Davidson, V2 Capital Management has the opportunity to unlock further value through additional capital expenditures. These future enhancements are expected to elevate the hotel's competitive position within the region.
"With future (capital expenditure) due, ownership is positioned to unlock meaningful value through enhancements that will elevate the asset’s competitive position and ensure its continued success in a highly sought-after region," Davidson explained.
Profile of the EVEN Hotel Norwalk
The EVEN Hotel Norwalk is a modern facility with 129 guest rooms. As part of a brand centered on wellness, it offers a distinct set of amenities designed to appeal to health-conscious travelers. The hotel's features aim to provide a balanced and rejuvenating experience for guests.
Key Amenities and Features
- In-Room Fitness: Each room is equipped with a dedicated fitness space, including equipment like a yoga mat and resistance bands.
- Dining: The hotel includes a full-service restaurant that offers healthy food and beverage options.
- Outdoor Spaces: Guests can use an outdoor patio area complete with fire pits for relaxation.
- Business Facilities: A business center is available for guests who need a workspace during their stay.
- Pet-Friendly Policy: The hotel also welcomes pets, catering to a growing segment of travelers.
These amenities, combined with the recent renovations and its strategic location, position the EVEN Hotel Norwalk as a key property in the Fairfield County hospitality market. The acquisition by a local investment firm suggests confidence in the continued economic strength and travel demand in the area.
