A San Francisco–based investment firm has purchased the Renaissance Austin Hotel, agreeing to pay $70 million for the 492-room hotel in the Arboretum retail development.
The Axton Group is purchasing the hotel from Florida-based Xenia Hotels & Resorts, the companies said Tuesday.
Xenia had agreed in February to sell the Renaissance Austin Hotel for $100 million to an unnamed buyer. However, Xenia announced in April that it had terminated the planned sale, as the coronavirus pandemic impacted the U.S. hotel industry.
Located at 9721 Arboretum Blvd., the Renaissance Austin Hotel is a 457,000 square foot property on 9.7 acres, according to the Travis Central Appraisal District. Its appraised value is $93.3 million, according to the appraisal district’s 2020 figures.
The hotel includes 88 suites and 77,600 square feet of indoor and outdoor meeting and event facilities, according to the Axton Group. The firm said it plans a number of renovations to the property, including a redesign of the entrance and lobby and renovations to meeting and banquet facilities.
The Axton Group “is actively evaluating opportunistic investments across the U.S. from sellers seeking liquidity,” the firm said in a news release announcing the acquisition.
“This investment is representative of the cyclical nature of hotel assets, which have been even more acutely impacted in this current environment than previous economic cycles given the dynamics of the pandemic,” Peter Oberndorf, founder and CEO of Axton, said in a written statement. “It is now our responsibility to reposition and enhance this property, guiding it on a path of recovery and ultimately leaving it in a better place than we entered. We look forward to making this vision a reality.”
The hotel will retain the Renaissance brand and continue to be managed by Marriott, the Axton Group said.