Greenwood Village-based NexGen Properties has acquired the 113-room Homewood Suites by Hilton Denver Tech Center, located at 199 Inverness Drive W, Englewood, in an all-cash transaction at an undisclosed price. The 4-story, 93,026-square-foot hotel will diversify NexGen’s hospitality holdings with its first extended-stay acquisition.
The hotel sits on 3.00 acres and was originally built in 2008. The seller, Denver-based Silverwest Hotels, was represented by Mark Darrington and Larry Kaplan with CBRE. NexGen was unrepresented in the transaction.
NexGen’s strategy for the hotel is to complete an extensive $5 million renovation to bring the hotel up to current brand standards. With the completion of a product improvement plan, Hilton® will provide NexGen with a new 15-year franchise agreement. Even without the renovation, the Homewood Suites is performing exceptionally well, with strong occupancies and average daily rates at the top of its competitive set. The hotel benefits from reoccurring corporate accounts and loyal brand enthusiasts.
NexGen was highly attracted to the hotel’s strategic positioning as the only Homewood Suites branded hotel in the Denver Tech Center and its location in the Inverness Business Park, which features a unique mix of resort amenities and Class A office. The hotel boasts excellent accessibility to Interstate 25, the region’s major north/south highway, e-470, and Centennial Airport. Furthermore, the submarket benefits from its proximity to South Denver’s largest retail destination, Park Meadows Mall, to major employment centers featuring Fortune 500 leaders in aerospace, finance, and professional services, and to the Sky Ridge Medical campus and Steadman Hawkins. “We knew we really liked the demand drivers and demographics at this location,” said Travis McNeil, president of NexGen Properties. “This acquisition helps us build our position in the submarket following our 2023 acquisition of nearby 384 Inverness Parkway, a multi-tenant office building.”
Homewood Suites by Hilton® is one of the best-performing, premier extended-stay brands in the industry. The Homewood Suites features studio, one-bedroom, and two-bedroom suites that are fully equipped with in-suite kitchens. The hotel offers free breakfast daily and a Complimentary Evening Social featuring beer, wine, and snacks. The Homewood Suites also offers an array of amenities including a 24-hour fitness center, sports courts, and an indoor pool.
NexGen has once again partnered with Greenwood Village-based Renascent Hospitality to oversee the PIP and manage hotel operations. Renascent is also a minority owner of the Homewood Suites with NexGen. “We are thrilled to partner again with NexGen on this exciting acquisition,” said Scott Somerville, CEO of Renascent Hospitality. “The Homewood Suites is perfectly positioned to serve the area’s business and leisure travelers. The renovation will ensure the property offers an elevated, modern experience that aligns with the needs and expectations of today’s travelers and Hilton Honors members.”
NexGen’s business strategy is to seek value-creation opportunities in commercial real estate across asset classes and look to continue to grow its partnership with Renascent through the acquisition of additional select service or extended stay value opportunities in the Mountain West region.
“After our success with the Hampton Inn & Suites Greeley, we are excited to embark on another hotel renovation with Renascent and have full confidence in their ability to manage the hotel to best-in-class standards., said Matt Bernstein, vice president of NexGen Properties. “We were able to acquire a top-performing extended-stay hotel at a significant discount to replacement cost, which leaves us confident in our all-in projected basis. Upon completion of the PIP, NexGen will benefit from the hotel’s healthy cash flow from operations for years to come.”
