Approximately $200 million has been deployed in the acquisition of distressed hotel assets in gateway markets including New York, Washington D.C. and Miami
Electra America Hospitality Group, a joint venture between Electra America and AKA, is pleased to announce the final close of Electra America Hospitality Fund I (EAHG I). The fund, launched in February of 2021, exceeded its target of raising $500 million from investors.
EAHG Fund I is focused on the opportunistic acquisition of independent hotels in major gateway markets with strong growth potential. Commitments to the fund came from both domestic and foreign institutional and HNW investors.
Electra America Hospitality Group has already deployed $100 million of capital in 2021 for the acquisition of seed assets, including a 194-key boutique hotel in Manhattan (Hotel AKA Nomad), a 178-key hotel in the heart of Old Town Alexandria, Virginia (Hotel AKA Alexandria), and a 201-key high-rise hotel in Brickell, Miami’s financial district (Hotel AKA Brickell).
“Electra America Hospitality Group remains highly focused on exceptionally well-located assets in gateway markets where distress or another combination of factors has created an opportunity to acquire a unique hotel asset at a significant discount,” said Russ Urban, CEO of EAHG. “Our best-in-class operating partner AKA, the leader in luxury, multi-night stay lodging, will then transform these properties into the best-in-class product in their respective submarkets.”
Added Joseph Lubeck, Chairman of EAHG, “Our ability to raise more than $500 million for this fund speaks to investors’ long-term confidence in the U.S. hospitality market, and the strength of Electra/AKA’s business strategy.”
EAHG continues to source opportunities in other major markets including Southeastern Florida, Southern California, Boston, Austin, Nashville and London, along with additional properties in Miami, New York City and Washington D.C.
About Electra America
Electra America is a real estate private equity firm focused on value-add and opportunistic investments in the U.S. Sunbelt markets. With initial capital commitments totaling approximately $2.5 billion across multiple funds managed by the firm and its affiliates, Electra America’s portfolio encompasses more than $6 billion in commercial real estate property holdings and debt in the multifamily, hospitality and single-family rental home sectors. Leveraging decades of expertise, Electra America is committed to transparency, the alignment of interests between sponsors and investors, and delivering superior risk-adjusted returns to its investors and partners. Electra America is a partnership between The Lubeck Family and a subsidiary of Electra Real Estate Ltd., an Israeli company founded in 1972 and publicly traded on the Tel Aviv stock exchange (TLV: ELCRE). For more information, visit www.electramerica.com.
About AKA
AKA, a division of Korman Communities, balances the style and hospitality of an intimate hotel with the space and comfort of a fully appointed luxury condominium. With premier locations in high-barrier to entry markets, AKA features a design-driven portfolio of hotels and hotel residences with first-class amenities and service. Designed for longer stays, AKA offers spacious and sophisticated furnished suites with exceptional business, wellness and lifestyle amenities, within iconic New York City, Los Angeles, Philadelphia, D.C., and London neighborhoods. Named by the BBC as the leading international luxury long-stay brand, AKA remains the world’s most trusted furnished apartment provider. For more information, visit https://www.stayaka.com/
