Mitchell Sells Historic Hotel in Galveston

GALVESTON, Texas – (Realty News Report) — Hospitality Asset Funding Group (HAF), a  provider of capital market solutions for the hospitality industry, recently completed its acquisition of the landmark Tremont House Hotel in Galveston.

HAF acquired the 108-room Tremont House Hotel in Galveston and made major equity investments in the Hyatt Place Cedar Park and Courtyard by Marriott Austin Pflugerville.

Hospitality Asset Funding Group is a joint venture between SRH Hospitality, based in Addison, and JLM Financial Investments, based in Austin.

Texas Landmark Circa 1865

The Tremont House Hotel, with roots dating back to 1865, is an iconic Texas landmark, located in the heart of The Strand National Historic Landmark District and Galveston’s Downtown Cultural Arts District. Hospitality Asset Funding Group acquired the hotel from Mitchell Historic Properties, which is owned by the estate of the late George P. Mitchell.

Mr. Mitchell, who died in 2013 at the age of 93, redeveloped a number of historic properties. He also developed The Woodlands and advanced the popular use of fracking in energy production.

“We are excited about the opportunity to continue the great legacy the Mitchell family cultivated during their ownership of the Tremont,’’ said Jerry Crenshaw, a partner at HAF and principal with SRH.

Hospitality Asset Funding Group is planning a multimillion-dollar renovation of the Tremont House to be completed in 2022.  Once renovations are complete, the Tremont House will be converted to a Marriott soft-branded Tribute property.

Paul Barham, partner at HAF and principal with SRH, said: “This is a historic hotel and, once our renovation is complete, we will provide a unique, upscale experience for our Galveston guests.”

The Tremont Hotel in Galveston was sold in 2021. Image: Courtesy Galveston Convention & Visitors Bureau.

The Hyatt Place and Courtyard by Marriott, are owned by SRH Hospitality, were recapitalized.

“We were drawn to both the Hyatt Place and Courtyard by Marriott because they are located in high-growth markets, with excellent brands that are well-poised to be market leaders as the Austin metropolitan area continues to expand,” said Chris Votaw, partner at HAF and an investment analyst at JLM Financial Investments.

The three properties represent HAF’s first portfolio investment since launching in fall 2020. HAF is focused on unique assets representing strong brands in growing markets, including direct acquisitions, recapitalization of existing properties and note purchases.

HAF continues to look for additional acquisition and investment opportunities across the southern United States.

“We have a very positive outlook for the hospitality industry going forward and continue to pursue opportunities as they arise,” said Larry Meyer partner at HAF and the founder of JLM Financial Investments.

The Hospitality Asset Funding Group LLC is a provider of capital market solutions for hospitality assets across the United States. HAF is a joint venture formed between SRH Hospitality based in Addison, Texas, and JLM Financial Investments, which is based in Austin.

Last year the HAF group announced it was acquiring the 228-room Hotel Galvez on Seawall Boulevard.

March 3, 2021 Realty News Report Copyright 2021

File: George P. Mitchell Galveston. Mitchell Sells Historic Hotel

Image: Courtesy Hospitality Asset Funding Group

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