A 459-room hotel in Washington, D.C., is now owned by a Newport Beach-based hospitality firm.
T2 Hospitality bought the Washington Marriott at Metro Center from Maryland-based Host Hotels & Resorts Inc. for $128 million, according to CoStar. The deal closed Aug. 28 for nearly $279,000 per room.
T2 Hospitality is part of The Tarsadia Group, which dates to 1976 when BU Patel, with his sons Mike Patel and Tushar Patel bought a motel in Anaheim. The family-owned business, which is based in Newport Center, now has more than $2 billion in assets, including more than a dozen hotels and 28 portfolio companies.
CoStar data shows that the Marriott property was bought with a $113.8 million loan.
The hotel was built in 1989 and renovated in 2013. On-site amenities include a 140-seat restaurant, 10,000-square-foot meeting and banquet room, fitness center and pool.
Host Hotels bought the Marriott location in 1994, paying $46.5 million, or $101,307 per room, for the property.
Washington Marriott at Metro Center is a 15-floor and 449,479-square-foot building at 775 12th St., NW, Washington, D.C.
Other hotels recently sold in the Washington, D.C., market include a Sheraton property in Arlington, Virginia, for $36.3 million, a Hilton Garden Inn location in Fairfax, Virginia, for $20 million and a Residence Inn in Alexandria, Virginia, for $31.3 million.
Nation’s Capital Hospitality Market
T2 Hospitality bought the Washington Marriott at Metro Center despite analysts predicting a slow hotel market in the nation’s capital.
A Marcus & Millichap hospitality report on the Washington, D.C., hotel market said booking momentum in and around the nation’s capital for 2025 would be tempered by policy shifts.
“Following a strong 2024, hotel performance in Washington, D.C., may moderate this year amid policy uncertainty and sluggish leisure travel. Federal headcount reductions and office lease terminations could dampen conference activity and midweek business demand, particularly in the (central business district),” according to Marcus & Millichap.
Exceptions to the predicted slowdown, per Marcus & Millichap’s report, include private sector bookings by industry trade groups and contractors seeking to work with the Trump Administration on pending federal projects.
“Return-to-office mandates should also encourage transient business travel and in-person meetings,” the Marcus & Millichap report continued.
“That said, while these factors may sustain higher-end hotel demand, ongoing financial strain will likely still limit travel outlays among budget-conscious consumers. These crosscurrents are set to slow occupancy gains.”
T2 Hospitality
The family-owned business started with Dunes Motel in Anaheim and eight other properties in Southern California. The company built its first ground-up hotel, a Travelodge in San Clemente, in 1985.
Tarsadia Hotels expanded in 1990, buying or developing hospitality properties such as Anaheim’s Peacock Suites and Crystal Inn and Suites and Radisson Hotel in San Diego.
The company split itself into three entities in 2011, including T2 Hospitality and Evolution Hospitality, a hotel management firm that was sold in 2015. The third entity is Tarsadia Investments, a single-family office with more than $2 billion in assets under management. Tarsadia Investments typically invests $5 million to $75 million in technology areas of health and finance.
Mike Patel, who is the founder and CEO of the T2 Hospitality unit, has participated in more than 200 successful projects, according to the company’s website.
T2’s portfolio currently includes Tetra Hotel in Sunnyvale, Residence Inn Marriott in Anaheim, Homewood Suites Hotel Circle in San Diego, Laguna Brisas Hotel in Laguna Beach and Doubletree Gold Resort in Palm Springs.
T2 Hospitality also bought a 128-room Hilton Garden Inn in Jacksonville, Florida, in August. The Washington, D.C., and Jacksonville deals are T2 Hospitality’s first properties on the East Coast.
T2 Hospitality did not return multiple requests for comment at press time.
