ABOUT THIS PROJECT
In May 2014, Pat Lowery and Jeff Barone acquired the fee interest in the historic Hotel Lennox out of foreclosure (following a failed $30M+ redevelopment of the building in 2002) after a strenuous two-year negotiation with bond holders and city/state officials. The value add project included amending a TIF, two tax incentive districts, a new long term parking lease, securing 10 year tax abatement, and structuring State and Federal Historic Tax Credits.
Following the acquisition, Barone and Lowery fully redeveloped the shuttered, 24 story Federally registered building. The complete redevelopment included converting the building to the popular Courtyard by Marriott select service brand to optimize the operating model and leverage the brand distribution. Additionally, the hotel was custom designed with a mid-century modern feel to complement the historic elements of the building and provide guests with a more modern, design forward experience. The project was completed on schedule and under budget, and less than 1-year after opening the hotel investors were paid their initial preferred coupon and received their allocated Federal Historic Tax Credit (which represented 39% of their initial investment).
The hotel’s location is widely considered one of the best in downtown St. Louis as it is the only hotel that is connected to Convention Center and on Washington Avenue, the popular entertainment and nightlife district. Capitalizing on the hotel’s preferred location, superior room product, and optimized operating model and brand, the Courtyard is on track to exceed year one’s original underwritten market share and NOI.