Lingerfelt targets hospitality investments that offer strong brand partnerships, sustainable market demand, and opportunities for long-term asset performance.
Market Focus:
Target Sub-Types:
| Select-service hotels | Full-service hotels in high-growth markets |
| Extended-stay hotels | Assets connected to healthcare, education, or business hubs |
Lingerfelt targets hospitality assets with strong brand affiliation, stable demand drivers, and operational upside. We focus on well-located properties with value-add potential through renovation, rebranding, or repositioning strategies.
The hotel is the only full-service hotel located in one of Virginia Beach’s most affluent residential neighborhoods. The location along the heavily trafficked Shore Drive benefits the hotel with its proximity to a wide range of amenities. Additionally, the hotel is the only hotel in Virginia Beach which owns its own beachfront, making it ideal for both events and family vacations. Following its original delivery in 1987, the hotel performed well, achieving market leading rates while drawing numerous accolades and attention; however, failure to meaningfully reinvest capital, as well as the introduction of nationally recognized flags to the Boardwalk area, resulted in a steady decline in performance as the dated hotel grew increasingly less competitive in the market. Given the significant capital needed to make the hotel competitive, the hotel presented an attractive opportunity to reposition a well-located, capital-starved hotel in the Virginia Beach market at an all-in basis representing a substantial discount-to-replacement cost (~$300k/key) of competing product.
As outlined in the original business plan, the hotel closed for a shut & gut in October of 2018 to undergo a full and complete renovation and rebranding under its new Delta Hotel by Marriott franchise, being the first Delta to be constructed under Marriott’s new design guidelines for the brand. The hotel was reopened for business under its new brand in March of 2021, with immediate strong operating performance.
In March of 2021 a recapitalization of the investment was completed whereby our original JV partner was lifted out of the investment, and a group of select co-investors replaced their equity at original par value and committed additional equity to cover construction cost overruns that occurred during redevelopment.
Given the capital markets environment for drive-to, investment-grade, beachfront hotel properties, we began marketing the asset for sale in a wide marketing process through Hunter Hotel Advisors in late 2021. In April of 2022, the Property was placed under contract to be sold for $82 million ($278k/key) to a joint venture between Blackpearl Capital and Paceline Equity Partners, representing a 7.77% cap rate on forward-assumed NOI. In all respects, the Delta outperformed underwritten expectations, and in 2021 was awarded Marriott’s United States Hotel Opening of the Year.
