Dynamic City Capital has bought two Marriott hotels in Anaheim for $303 million.
The Utah-based investor purchased the five-story, 174-room SpringHill Suites at 1801 South Harbor Boulevard, the Orange County Business Journal reported. It also picked up the nine-story, 294-room Residence Inn at 640 West Katella Avenue.
The seller of the hotels near Disneyland Resort and the Anaheim Convention Center was Newport Beach-based T2 Hospitality, led by Mike Patel.
The deal works out to $647,436 per room.
SpringHill Suites was built in 2014, the Residence Inn in 2016. It’s not clear who developed the hotels, nor when T2 built or bought them, and for how much.
Either way, Dynamic City appears to have paid top dollar for each hotel.
The average price per room for Orange County hotels last year was nearly $350,000, compared to $250,000 in 2020, according to a Marcus & Millichap hospitality report last year. Based on the latest data, Dynamic City paid 85 percent higher than the market average.
In October, Newport Beach-based MHG Capital bought the 301-unit Embassy Suites by Hilton Santa Ana-Orange County Airport at 1325 East Dyer Road for $41 million, or $137,000 per room.
A year earlier, MHG bought the DoubleTree by Hilton Suites Anaheim Resort Convention Center at 2085 South Harbor Boulevard for $62 million, or $247,000 per room.
Dynamic City Capital was founded in 1991 by a group of investors who wanted to build the first Marriott-franchised hotel in Utah, then built hotels from coast to coast, according to its website. A sister company, Lodging Dynamics, manages more than 40 hotels from Illinois to Hawaii.
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T2 Hospitality, founded in 1976 by BU Patel and his sons, Mike Patel and Tushar Patel, was formerly known as Tarsadia Hotels. Brother Tushar Patel founded the separately managed Tarsadia Investments, a single-family office with $2 billion in assets under management.
In June, Tarsadia Investments refinanced the 1,030-key Anaheim Marriott hotel at 700 West Convention Way with a $125 million loan.