A joint venture between Lowen Hospitality and Vashee & Associates has purchased the TownePlace Suites and Fairfield Inn & Suites Dallas Downtown from Butler Brothers Hospitality Group. Other terms were not disclosed. Gomes and Allan Miller, senior managing director investments, Marcus & Millichap, represented the seller and procured the buyer.
The TownePlace Suites and Fairfield Inn & Suites Dallas Downtown is a nine-story, dual-branded, ornately detailed 274-room hotel in Dallas. The Butler Brothers Hospitality Group will continue to own and operate the 237 apartments and the 20,000 square feet of commercial space at the Butler Brothers Building.
“The Dallas-Fort Worth Metroplex is one of the top markets for room demand in 2024,” Chris Gomes, executive managing director investments in Marcus & Millichap’s Dallas office, said in a statement. “The market was up double digits in revenue per available room in 2023 compared to 2022, and TownePlace Suites and Fairfield Inn & Suites Dallas Downtown achieved over 20 percent RevPAR growth during same period. The hotel is in an iconic, classical Revival-style building constructed in 1910, called the Butler Brothers Building. In 2016, the building underwent extensive renovations and was repositioned by Alterra Worldwide, a Dallas-based commercial real estate developer and general contractor, as a dual-branded hotel and apartment complex in a condominium structure. This sale is part of the condominium offering.”
The hotel is in the Dallas Central Business District, within walking distance of Kay Bailey Hutchinson Convention Center, and Trammell Crow Park is nearby. Attractions in the area include The Sixth Floor Museum at Dealey Plaza, American Airlines Center, State Fair of Texas, Dallas Zoo, and The Dallas World Aquarium. Dallas Love Field Airport and Dallas-Fort Worth International Airport are a short drive away.
The TownePlace Suites and Fairfield Inn & Suites hotel has 132 guestrooms and 142 guestrooms, respectively. Amenities include an outdoor pool and patio with barbecue grills, fitness center, business center, 1,050 square feet of meeting space, and a convenience store.
“This is the first transaction in the Dallas CBD since January 2022, when four hotels in the downtown area changed hands as part of a larger portfolio,” Gomes added. “Dallas CBD hotels are anticipating continued strong demand for room nights in future years resulting from the $3.7 billion redevelopment/expansion of the Kay Bailey Hutchinson Convention Center, which includes expanding the exhibition space, adding new meeting rooms, and enhancing technological capabilities to position the center as a premier destination for large-scale events and conferences. Additional developments, such as the 800,000 square-foot, state-of-the-art Goldman Sachs Dallas campus and major sporting events, including the 2026 FIFA World Cup games, will also fuel room demand.”