Geolo Capital has closed on the sale of the new Thompson Washington D.C. hotel to Hamburg, Germany-based Union Investment for $120 million.
Developed over three years in partnership with Boston-based JW Capital Partners, the 225-room Thompson Washington D.C. opened on January 8, 2020.
The sale to Union Investment marks the realization of a complex transaction that was arranged more than two years in advance of the hotel’s completion.
Following the sale, the Geolo and JW Capital Partners joint venture will remain a long-term tenant, leasing the property back from Union Investment and overseeing management of the asset, which will continue to be operated as a Thompson Hotel.
John Pritzker, founding partner and director of Geolo Capital, says: “We are very pleased to have found the right partner in Union Investment, which shares our vision for the property. Together, we will retain a significant economic interest in the ongoing success of the hotel through our long-term lease agreement. We look forward to replicating this symbiotic relationship between capital partners and developers on a repeated basis.”
Thompson Washington D.C. is the first property in the nation’s capital for the luxury lifestyle hotel brand.
Located in the rapidly improving Capitol Riverfront neighborhood in the 42-acre mixed-use development of historic Navy Yard, the hotel comprises 225 bedrooms, three restaurant and bar concepts by Danny Meyer’s Union Square Hospitality Group, and over 7,000 square feet of indoor and outdoor space for meetings and events.
It has two restaurants, Maialino Mare and Anchovy Social.
“The new Thompson Washington D.C. is a perfect addition to our US hotel portfolio. We are proud that we are now also represented in the capital with an exceptional property,” said Volker Noack, Member of the Management Board at Union Investment Real Estate GmbH. “Together with Geolo Capital and JW Capital Partners, we will ensure that the hotel will continue to be an important attraction in the trendy Navy Yard district in the long term.”