Lingerfelt CommonWealth Partners, LLC To Purchase and Rebrand Virginia Beach Resort Hotel & Conference Center with $44 Million Capital Investment

May 15, 2018

Lingerfelt CommonWealth Partners, LLC, a vertically integrated, real estate income fund management firm headquartered in Richmond, Va., will purchase the Virginia Beach Resort Hotel & Conference Center at 2800 Shore Drive for $19 million. Lingerfelt CommonWealth Partners has hired Commonwealth Lodging Management, LLC, a hospitality management and consulting firm headquartered in Virginia Beach, to operate and manage the hotel/conference center, which comprises 263,328 square feet with 295 suites on a 3.6-acre site along the Chesapeake Bay.

Lingerfelt CommonWealth Partners plans a major $25 million renovation to the property and will rebrand it as Delta Hotel by Marriott, Marriott's newest upscale, full-service brand designed for business and leisure travelers. The new hospitality brand currently has more than 12,000 rooms in 50 operating hotels across the U.S., Canada and China. Powered by Marriott's industry-leading digital, sales and marketing engines, Delta Hotels is poised for U.S. and global growth.

"This investment in the Shore Drive corridor aligns with the City's vision for this dynamic Chesapeake Bay-fronted business and residential community," said Virginia Beach Economic Development Director Warren D. Harris. "We are confident that Lingerfelt CommonWealth Partners and Commonwealth Lodging Management will deliver an outstanding new product to the market."

Delta Hotels competes in the upscale tier with an efficient full-service cost model for prospective owners. For consumers, Delta Hotels provides essentials for the modern business traveler, from rooms with free Wi-Fi to fitness and dining options that fit seamlessly into the travel flow.

"We are excited about this opportunity to expand our portfolio with the addition of this great asset located on the Chesapeake Bay in Virginia Beach," said Duane Gauthier, managing director of Commonwealth Lodging Management. "With our significant reinvestment to renovate this asset into Delta Hotel by Marriott, combined with Commonwealth Lodging's proven track record delivering exceptional guest service, we are confident this location will be the premier all-suite hotel anchoring the North End of Virginia Beach."

Commonwealth Lodging Management has significant experience in the management of nationally franchised hotel assets with a strong background in hotel operations, franchise relations, development and hotel finance. Other managed hotel properties include Norfolk Waterside Marriott, Richmond Marriott Short Pump, Fairfield Inn by Marriott Orlando Airport, Courtyard by Marriott Gastonia, DoubleTree Atlanta, Sheraton Suites Wilmington, DoubleTree Norwalk, Hilton Garden Inn Jacksonville Southbank and Homewood Suites by Hilton Jacksonville Southbank.

The Virginia Beach Development Authority has approved an Economic Development Investment Program grant in the amount of $200,000 based on the company's capital investment of $25 million. The grant funds will be used toward the major renovation and reinvestment in the Shore Drive corridor.

ABOUT LINGERFELT COMMONWEALTH PARTNERS
Lingerfelt CommonWealth Partners, LLC, headquartered in Richmond, Va., is a vertically integrated, full-service real estate investment management firm with additional offices in Charlotte, N.C., Greensboro, N.C., Greenville, S.C., Hampton Roads, Va., Jacksonville, Fla., Nashville Tenn., Raleigh, N.C., Reading, Pa., Houston, Texas and Tampa, Fla. Together with its predecessors in the private sector and public REIT sector, its partners have built, acquired and managed nearly 20 million square feet of commercial real estate valued at approximately $2 billion across the Mid-Atlantic and Southeast. Learn more at www.lingerfeltcommonwealth.com.

ABOUT COMMONWEALTH LODGING MANAGEMENT, LLC
Commonwealth Lodging Management, LLC is a wholly owned subsidiary of Commonwealth Commercial Partners, LLC, a leading full-service commercial real estate firm headquartered in Richmond, Va. Commonwealth Lodging has extensive experience with nationally recognized select- and full-service franchises operating in suburban, secondary and tertiary markets. The company specializes in focused, hands-on management of hotels for institutional clients and owners to stabilize property management, improve cash flow and develop sell/hold strategies. To learn more, visit www.commonwealthlodging.com.

The mission of the Virginia Beach Department of Economic Development is to attract and retain national and international businesses to stimulate capital investment and create jobs. The Department of Economic Development received re-accreditation through the International Economic Development Council in 2016 and is one of only 50 economic development organizations in the world to have this recognition. Virginia Beach was named America's #1 best big city to live in by wallethub.com. For more information, visit www.yesvirginiabeach.com.

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