Hodges Ward Elliott has been exclusively retained by Venice Harbor Capital (“VHC” or the “Sponsor”) to arrange up to 65% loan-to-cost (“LTC”) financing ($37,050,000 / $57,800 per key) on a fixed or floating rate basis to finance the acquisition of the Atlanta Airport Marriott (the “Hotel” or the “Property”). The Sponsor plans to execute approximately $18 million in capital improvements, which will be capitalized with $7 million funded pari-passu (preferred) or via up-front reserves and the balance of the FF&E Reserve that is transferred with the purchase. The current balance of the FF&E Reserve is approximately $11.5 million and will continue to accrue through closing and post-closing, providing future capital expenditure support.
The Property consists of 641 rooms situated on 15 acres at the southwest corner of Hartsfield-Jackson Atlanta International Airport (“ATL”), near the intersection of I-85 and I-285. VHC is acquiring the Hotel for $47.0 million ($73,323 per key), inclusive of the transferring FF&E Reserve. Total capitalization is $57.0 million ($88,924 per key), including the $18.0 million in planned capital improvements.
Targeted capex investments include a comprehensive renovation of the meeting spaces (last updated in 2011/2012), select public area enhancements, and infrastructure upgrades such as roofing, waterproofing, and elevator modernization. The infrastructure scope aligns with Marriott’s 2024 capital plan and will be refined through third-party diligence. Guestrooms were last renovated and brought online in 2017, and remain in strong competitive condition.
As of April 2025, the Hotel is generating $4,712,867 in T-12 NOI, equating to a 12.7% debt yield on requested loan proceeds at 65% LTC.
Venice Harbor Capital is a privately held investment and advisory platform specializing in hospitality real estate, travel and leisure, and operations-centric service businesses. The firm was founded by Michael Palmeri, who brings over 25 years of institutional hospitality private equity experience, including prior leadership roles at KSL Resorts, Loews Hotels, and Chartres Lodging. Over the course of his career, Palmeri has closed on more than $5 billion of transactions and raised approximately $1.1 billion of limited partner equity from a diverse investor base that includes institutional private equity funds, high-net-worth individuals, and sovereign wealth capital.
Investment Highlights
Attractive all-in cost basis of $88,924 per key and an initial loan basis of $57,800 per key, representing a significant discount to replacement cost and recent comparable sales in the airport submarket.
Strong historical and in-place financial performance, with a 19.6% debt yield in 2019, and 12.7% debt yield as of April 2025 T-12 NOI on request proceeds - supporting substantial lender coverage and risk mitigation.
Well-maintained physical plant with over $30 million of capital investment since 2013, including $17 million since 2017, setting a strong foundation for VHC’s upcoming targeted improvements.
Latent opportunities to drive top-line performance and improve profit margins through active asset management.
Projected performance growth driven by Sponsor’s competitive repositioning strategy anchored by (1) executing a comprehensive renovation to the meeting facilities; (2) recovering group room nights to pre-pandemic levels; (3) increasing group spend more commensurate with its competitors; (4) driving higher F&B profit margins more consistent with hotels with meaningful banquets and catering; and (5) investing in sales leadership and resources – rather than rely on Marriott’s centralized programs – to more directly control competitive positioning including revenue management and room night production. Following the renovation and active asset management, NOI will grow to $8.1M by 2029 (compared to $7.2M in 2019, a 1.1% CAGR).
No new competitive hotel supply in the pipeline, coupled with long-term demand growth from the $11.5 billion ATLNext expansion at Hartsfield-Jackson International Airport, enhances asset durability and RevPAR resiliency.
Atlanta’s macroeconomic fundamentals remain robust, with population forecasted to grow from 6.1 million to 8.0+ million by 2050, and 18 Fortune 500 companies headquartered in the metro. The airport submarket is anchored by the #1 busiest airport in the world, and garners a diverse and balanced demand mix of group, transient, and contract customers.
Venice Harbor Capital is a seasoned hospitality sponsor, led by Michael Palmeri, who has executed over $5 billion in transactions across full-service, upper-upscale, and luxury segments. His experience includes leadership roles at KSL Resorts and Loews Hotels, with a track record of success in complex, performance-driven assets.
OPERATIONAL UPSIDE
Group Room Night (GRN) recovery underway: The Hotel averaged 66,000 GRN pre-pandemic (peak of 76,000 in 2017) and currently generates ~40,000 GRN. Stabilized underwriting assumes a return to 61,000 GRN.
RevPAR CAGR underwritten at 2.5% from 2019–2029, in line with inflation expectations and supported by compounding demand and brand strength. This compares favorably with the 2.9% CAGR between 2007–2019.
Room profit margins are conservatively underwritten at 72%, despite comps like Marriott Gateway (75%) and Hilton Atlanta Airport (83%) operating at higher efficiency. Upside remains through asset management strategies including labor optimization and operational expense controls.
Food & Beverage (F&B) margin expansion anticipated: Revenue per Occupied Group Room (ROGR) is projected to grow from $150 (2024) to $190 (2029), alongside a capital improvement to meeting space.
By comparison, Marriott Gateway achieved $307 ROGR with 47,000 GRN. F&B profit margin is expected to grow from 33% to 37.5%, with upside toward Hilton (40%) and Gateway (48%) benchmarks. AAM’s banquet & catering mix is underwritten to grow from 59% to 71% by 2029.
Sponsorship Overview
Venice Harbor Capital Partners (“VHC”) is a privately held investment and advisory firm specializing in hospitality real estate, travel and leisure, and operations-driven service businesses. Our strategy is grounded by four core pillars: deep sector experience, analytical rigor, an expansive network of industry relationships, and a commitment to meaningful partnerships. These principles guide how we source opportunities, mitigate risk, drive performance, and collaborate with stakeholders to create and preserve value
VHC leads with experience—combining deep industry knowledge, operational insight, financial discipline, and market intelligence to add value throughout every stage of the investment lifecycle. This expertise enables us to turn complexity into opportunity, navigate challenges with confidence, and deliver results that outperform expectations.
Analytical rigor underpins every investment decision. We apply a disciplined, datadriven approach from underwriting to asset management to ensure clarity, consistency, and performance across all stages of execution.
Our competitive advantage is amplified by an integrated ecosystem of relationships, including capital partners, operators, and specialized advisors. This network enhances our reach, accelerates execution, and helps position each opportunity for success.
Finally, we believe that successful investing starts with alignment. VHC builds relationships with partners who share our values and enjoy working together—grounded in trust, transparency, and a shared vision for long-term success.
VHC founder, Michael Palmeri, has more than 25 years of hospitality real estate and private equity investing experience, and has closed on more than $5B in transactions. Complementing his investing experience, Michael has led the asset management of several key portfolio investments, and has worked comprehensively with operating partners throughout his career including having worked for prominent hotel operating companies. Prior to VHC, Michael worked for KSL Resorts, Loews Hotels, and Chartres Lodging. Michael earned a BS in Finance and Real Estate from The School of Hotel Administration at Cornell University.
This differentiated background, spanning investments, operations, capital formation, and brand collaboration positions VHC to execute on complex, value-driven opportunities with a clear understanding of market dynamics and institutional execution standards.