Southwest Value Partners Acquires Landmark New Orleans Hotel
January 24, 2013
On behalf of Pan-American Life Insurance Group and InterContinental Hotels Group (IHG), Jones Lang LaSalle’s Hotels & Hospitality Group announced the firm has arranged the sale of the InterContinental New Orleans hotel to Southwest Value Partners. The 479-room premier full-service hotel will continue to operate under the InterContinental® Hotels & Resorts brand and is superbly located in the Central Business District of New Orleans in close proximity to the French Quarter and the New Orleans Convention Center.
Jose S. Suquet, Chairman of the Board, President and CEO of Pan-American Life Insurance Group indicated that the company continues to divest non-strategic assets from its investment portfolio to focus on its core life and health insurance businesses in the US, Latin America and the Caribbean.
Managing Director Jeffrey Davis and Senior Vice President Gilda Perez-Alvarado led the Jones Lang LaSalle investment sales team on this transaction.
“New Orleans is one of the hottest growth markets in the nation. The limited supply of quality hotel product available for purchase in the city makes the InterContinental New Orleans an irreplaceable asset with a strong brand for the new ownership,” said Davis. “The hotel sector in the city demonstrated strong resiliency post-Hurricane Katrina and has re-established itself among the fastest recovering markets in the nation. We expect investors to have a keen eye for opportunities in New Orleans as they look to capitalize on solid yields and strong growth.”
Perez-Alvarado added, “A key driver for New Orleans is the return of group demand and tourism with millions of visitors each year. The market experienced robust RevPAR growth in 2012 with 14.6 percent growth over 2011 levels, and is on track to hit a 20-year high.”
Tourism is the economic driver of New Orleans, employing 70,000 people and investing $5 billion of new capital into the city each year, more than any other business sector. The InterContinental New Orleans is located on St. Charles Avenue between Poydras and Perdido Streets within two blocks of the famed French Quarter, Canal Street and Magazine Street. It features large guest rooms, three restaurants, 32,487 square-feet of meeting and function space, a rooftop pool, fitness center and business center.