Argosy Real Estate Partners Exits the DoubleTree El Segundo
On July 25, 2017, Argosy Real Estate Partners III, L.P. and its parallel funds (“AREP III”), funds managed by Argosy Real Estate Partners, exited their investment in the DoubleTree by Hilton El Segundo/Los Angeles, a 7-story, 216-key hotel located two miles south of the Los Angeles International Airport in El Segundo, California.
In February 2014, AREP III partnered with Evolution Hospitality to acquire the property in an off-market transaction sourced by the Argosy Real Estate Partners team. The compact full-service hotel, which was built in 1987, had previously achieved consistently strong operating performance but offered upside potential through renovation and improved management. The DoubleTree brand, which includes more than 300 hotels worldwide, is owned by Hilton and benefits from its strong distribution system and loyalty program.
The partnership completed a capital improvement program focused on renovating the lobby, guestrooms, restaurant, and common areas. In addition, the partnership substantially increased revenues and reduced expenses due to improved management.