CRESCENT ACQUIRES THE MADISON HOTEL WASHINGTON D.C.
FORT WORTH, April 25, 2022 – Crescent Real Estate LLC (“Crescent”) acquired The Madison Hotel, a 356-key historic luxury hotel located in the heart of downtown Washington D.C., as the first investment within Crescent’s GP Invitation Fund III. Located at the corner of 15th and M Street NW, the Hotel sits directly across from Washington’s newest premier mixed-use development known as Midtown Center.
Comprising more than 870,000 square feet and 4,000 employees, Midtown Center is home to the Fannie Mae Headquarters. Midtown Center boasts 42,000 square feet of ground-floor retail with an esteemed collection of restaurants including Blue Bottle Coffee, Dauphine’s, SHŌTŌ, Akedo and Philotimo. The Madison Hotel provides its guests with enviable proximity to downtown’s world-class dining and premier office space, coupled with easily walkable access to D.C.’s most coveted leisure and tourist attractions. Crescent has engaged HEI Hotels & Resorts, a nationally recognized hotel management firm with extensive experience managing luxury and full-service hotels throughout the United States.
With Crescent’s acquisition, The Madison Hotel has undergone a brand conversion and is now proud to participate in Marriott Bonvoy®, the award-winning travel program from Marriott International. As part of the brand conversion, Crescent will conduct a multi-million comprehensive, guest-facing renovation of the historic hotel to further enhance its standing as a top business and leisure hotel in Washington D.C.
Originally built in 1963 by renowned hotelier Marshall Coyne, The Madison Hotel has hosted some of the nation’s most distinguished guests and foreign dignitaries. Prominently located in the heart of the Central Business District, The Madison Hotel benefits from a unique and diverse set of demand generators. Washington is home to all 3 branches of the U.S. federal government, 15 Fortune 500 companies, the nation’s 2nd largest office market, world-class museums and the world’s most distinguished institutions including the World Bank, the International Monetary Fund, the Federal Reserve and a plethora of non-profits, lobbying groups, law firms and union headquarters. The technology sector has also become a rapidly growing segment of the city’s economy and tourism has consistently grown in the nation’s capital year after year given the unparalleled attractions that Washington offers. Washington D.C. has long been considered one of the most stable lodging markets in the country supported by this persistent array of demand.
“This investment presents an extraordinary opportunity to own a renowned hotel in the center of the world’s most important institutions and truly unique cities. Although Washington’s hospitality industry certainly struggled through the COVID pandemic, we believe the timing is opportune to acquire The Madison Hotel, conduct an extensive guest-facing renovation and capitalize on the resurgence of demand generated by Washington DC’s unparalleled and various industries.” said Jason Anderson, Co-CEO of Crescent.
“We are excited to transition The Madison Hotel into Marriott’s premier Bonvoy loyalty system. This is a natural fit for the sophisticated and timeless character embodied by The Madison Hotel throughout its history,” added Anderson.
Eastdil Secured served as the exclusive advisor to the seller in the transaction.