Ascendant Capital Partners has acquired an eight-hotel portfolio from Coastal Hospitality Associates, LLC. The portfolio includes 965 rooms across six hotels in Virginia Beach, Virginia, and two hotels in the Outer Banks, North Carolina. Schulte Hospitality Group will take over operations of the portfolio as part of the deal.
Most of the rooms in the portfolio offer direct ocean views. Seven of the eight properties are beachfront, and the eighth is a town center hotel. Five of the eight hotels have been extensively renovated since 2022.
Portfolio History, Brand Mix, and Market Position
The late Thomas J. Lyons, Jr. founded Coastal Hospitality and assembled the portfolio over several decades. He started with a 12-room inn in 1968 and went on to develop nearly 40 hotels across Virginia and North Carolina.
The eight hotels carry Marriott and IHG brands. They are SpringHill Suites by Marriott Virginia Beach Oceanfront, Residence Inn by Marriott Virginia Beach Town Center, Residence Inn by Marriott Virginia Beach Oceanfront, Fairfield by Marriott Inn & Suites Virginia Beach Oceanfront, Holiday Inn VA Beach-Oceanside, Holiday Inn Express & Suites VA Beach Oceanfront, Holiday Inn Express Nags Head Oceanfront, and Holiday Inn Express Kitty Hawk – Outer Banks.
Ascendant plans to make capital and operational improvements across the portfolio. The company said it will focus on guest-facing upgrades to strengthen asset performance.
The portfolio draws on tourism, government, and corporate demand. Ascendant said the properties sit in supply-constrained markets with resilient demand.
“This transaction reflects the continued execution of our differentiated hospitality strategy, which is focused on high-quality assets in dynamic, supply-constrained markets with resilient demand drivers,” said Alex Halpern, Cofounder and Chief Investment Officer of Ascendant. Halpern said the portfolio offers a concentration of beachfront properties in established Southeastern destinations, supported by tourism, government, and corporate demand.
Operator and Advisor Roles
Darryl Schulte, Chief Executive Officer of SHG, said the company will focus on driving performance through disciplined execution and enhanced commercial strategies for guests at each property.
Christopher Brown, President of Coastal Hospitality, said his company built and operated the portfolio with a commitment to guest experience and pointed to the operational success and renovations completed under Coastal Hospitality’s ownership.
CBRE Hotels served as sell-side advisor to Coastal Hospitality. CBRE Debt & Structured Finance served as financing advisor to Ascendant.
Ascendant Capital Partners is a vertically integrated real estate investment firm headquartered in Los Angeles, with a regional office in Dallas. The firm manages discretionary commingled institutional funds focused on hospitality and residential sectors and targets US gateway markets and high-growth cities including New York, Boston, Miami, Houston, Phoenix, and Dallas.
Schulte Hospitality Group is a hospitality management and development company overseeing more than 250 hotels, restaurants, and related ventures with over 10,000 team members. Founded in 1999, the company is headquartered in Louisville, Kentucky, with an office in London, and its portfolio spans brands including Marriott, Hilton, IHG, Hyatt, and Graduate Hotels, along with luxury, boutique, and independent resorts.
