Hotel Development Partners

What Hotel Development Partners does

Hotel Development Partners (HDP) is an Atlanta, Georgia-based joint venture formed in November 2012 by Hotel Equities and IRE Capital to acquire and develop premier-branded, select-service hotels. The firm operates three closed-end private equity investment funds (Fund I, II, and III) that target private and institutional investors, executing ground-up construction, acquisition, and redevelopment of hotels primarily under Marriott brands (Courtyard, Fairfield Inn & Suites, Residence Inn, SpringHill Suites, TownePlace Suites), with additional Hilton (Hampton Inn & Suites) and Choice Hotels (Sleep Inn) exposure. Across its funds, HDP has developed or acquired approximately 1,467-1,561 hotel rooms concentrated in the Southeast US — including Atlanta metro submarkets, Charleston SC, Miami Beach FL, Alpharetta GA, and Jacksonville FL — with the Jacksonville Mayo Clinic-area project exemplifying a deliberate medical-demand-adjacent strategy. Fund I closed at $187M total capitalization with $24.5M of equity and $44M of co-investment (including $28M from Ares Capital), and achieved an estimated 28%+ IRR and $81M of estimated profit on a $268M estimated sales value.

The business model is a traditional closed-end fund manager: HDP earns management fees during the investment and harvest periods plus performance-based carried interest (sponsor promote) after investors receive a 10% preferred return and return of principal. Distribution is conducted via private placement to accredited investors, with direct investor outreach and principal networks as the primary GTM channels; the firm supplements this with a corporate website, press releases, and minimal social media presence. Operations are asset-light — HDP itself runs on 1-10 employees and outsources property management to affiliated Hotel Equities and to partners such as Concord Hospitality Enterprises, while franchise distribution flows through the standard Marriott, Hilton, and Choice brand channels (brand websites, OTAs, GDS). Leadership combines former Marriott International COO Robert J. McCarthy (Chairman), Hotel Equities founder Frederick W. Cerrone (COO), and IRE Capital founder Allen T. O'Brien (CEO), with Brian K. Tarter as CFO — a team whose blended institutional brand-side, operating, and capital-markets experience is central to the firm's positioning.

The platform's distinctive feature is its mixed-use development capability: HDP has demonstrated the ability to layer retail outparcels onto hotel sites (e.g., the Perimeter Center project's 26,000 SF of retail at $50 PSF rents, generating over $16M of additional value) and to identify off-market opportunities requiring complex entitlements such as zoning exceptions. There is no proprietary technology or AI/ML capability disclosed; competitive advantage derives from principal relationships, franchise access across all three major select-service brand families, and a track record of institutional-grade returns in a tightly defined Southeast US select-service niche.

Name

Hotel Development Partners

Legal name

Hotel Development Partners

Website

https://hdpfunds.com

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

1–10 employees

Short description

Hotel Development Partners is an Atlanta-based joint venture between Hotel Equities and IRE Capital that operates three closed-end private equity funds developing select-service hotels under Marriott, Hilton, and Choice brands for private and institutional investors in the Southeast US.

Ownership category

akta.pro rank

Product category

Hotel Investment and Real Estate Development

NAICS

Hotels (except Casino Hotels) and Motels (72111), Traveler Accommodation (7211)

SIC

Hotels & Motels (7011), Hotels, Rooming Houses, Camps & Other Lodging Places (7000)

akta.pro primary industry

Hospitality (Hotel) Property Management (BPAJAGAG)

akta.pro secondary industry

Preferred Hotel Program Design & Portfolio Strategy (THACAGAD)

Keywords

• Hotel investment funds
• Hotel development services
• Select-service hotels
• Hospitality real estate
• Hotel acquisitions

Headquarters

HQ city

Atlanta

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Supply Chain, Marketing or Sales, Infrastructure

Revenue model

1. Hotel Investment Fund Management: HDP raises capital from private and institutional investors through closed-end investment funds (Fund I, II, III). The firm earns management fees and performance-based carried interest (sponsor promote) on fund returns after investors receive preferred return and return of principal. Fund I had $187M total capitalization with $24.5M equity and $44M co-investment.
2. Hotel Development and Redevelopment: HDP develops and redevelops select-service hotels (Marriott, Hilton, Choice brands), then sells completed assets or holds them in the fund portfolio. Revenue is realized through property appreciation, operational cash flows, and exit proceeds. Fund I achieved estimated sales value of $268M on $187M investment.
3. Retail Outparcel Development: HDP creates additional value by developing retail outparcels adjacent to hotel properties. For example, the Perimeter Center project included 26,000 SF of retail space with $50 PSF rental rates and $300,000 ground rents, generating over $16M of additional value.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels5 records

Core offering

Hotel Development Partners (HDP) is an Atlanta-based joint venture that acquires and develops premier-branded, select-service hotels on behalf of private and institutional investors through three closed-end investment funds (Fund I, II, III). The firm executes ground-up construction and redevelopment of hotels franchised under Marriott, Hilton, and Choice Hotels brands, primarily in the Southeast U.S., and generates returns through asset appreciation, operational cash flows, and exit sales.

Product overview

Hotel Development Partners (HDP) operates as a hotel development and investment company offering three closed-end private equity funds (Fund I, II, III) that invest in select-service hotels. The funds develop properties through ground-up construction and acquire/redeem existing hotels, primarily under Marriott brands (Courtyard, Fairfield Inn & Suites, Residence Inn, SpringHill Suites, TownePlace Suites), as well as Hilton (Hampton Inn & Suites) and Choice Hotels (Sleep Inn). HDP functions as a joint venture between Hotel Equities (hotel management) and IRE Capital (real estate investment), providing development expertise, capital partnerships, and operational management through affiliated companies. The company creates value by identifying unique development opportunities and executing profitable business plans for fund investors.

Differentiator

Problem solved

Functional benefit

Products and services

• HDP Investment Fund I Closed-end private equity hotel investment fund comprising 12 select-service hotels (1,225 rooms) across Atlanta, Charleston SC, and Miami Beach. Portfolio includes 10 Marriott-branded hotels plus one Hilton and one Choice property. Targeted at private and institutional investors seeking risk-adjusted returns; first year of operations was 2017.
• HDP Investment Fund II Closed-end private equity hotel investment fund comprising two ground-up constructed select-service hotels (242 rooms total): the 127-room Residence Inn Atlanta Perimeter Dunwoody and the 115-room Courtyard Alpharetta near Avalon. Fund is closed for additional investments.
• HDP Investment Fund III Closed-end private equity hotel investment fund that completed development of the 155-room Residence Inn Jacksonville-Mayo Clinic Area hotel, opened May 21, 2021. Fund is closed for further investments. Located half a mile from the Mayo Clinic to capture medical travel demand.
• Hotel Development Services Ground-up construction and redevelopment services for premier-branded select-service hotels. Creates value through unique development opportunities, including complex mixed-use projects combining hotels with retail outparcels (e.g., Perimeter Center with 26,000 SF of retail at $50 PSF rents).
• Hotel Investment Management Investment management services for private and institutional investors in select-service hotel real estate, offering risk-adjusted returns through partnership with profitable hotel brands (Marriott, Hilton, Choice). Includes sourcing, fund administration, and asset management.

Quantifiable outcome

• Fund I achieved 28%+ IRR, 16%+ estimated cash on cash return, and $81M estimated profit on $187M capitalization.
• +2 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Nine partnerships are on record, tiered core, major, notable and minor.

• Hotel EquitiescoreStrategic or Co-development Partner · 6 November 2012Hotel Equities, a hotel management and investment firm, co-founded HDP in 2012 with IRE Capital. Frederick Cerrone serves as COO of HDP. Hotel Equities manages HDP-owned hotels and was a co-investor in multiple fund properties.
• IRE CapitalcoreStrategic or Co-development Partner · 6 November 2012IRE Capital, led by Allen O'Brien, co-founded HDP in 2012 with Hotel Equities. IRE Capital brings institutional investor relationships and commercial real estate development expertise. Allen O'Brien serves as CEO of HDP.
• Concord Hospitality EnterprisesmajorImplementation/ SI/ Consulting PartnerConcord Hospitality operates over 140 hotels across the US and Canada. They serve as hotel management company for HDP's Residence Inn Jacksonville-Mayo Clinic Area and other properties. The Jacksonville property won Marriott's Hotel of the Year under their management.
• Alex Brown RealtynotableStrategic or Co-development PartnerAlex Brown Realty was a joint venture partner with HDP on the Courtyard by Marriott Alpharetta development near Avalon, a mixed-use development project.
• Hunter Hotel AdvisorsnotableChannel Partner/ Reseller/ DistributorHunter Hotel Advisors served as broker for the sale of six Atlanta hotels from HDP and an institutional partner to Driftwood Acquisitions & Development, LP. The 568-room portfolio was sold in December 2018.
• Marriott InternationalcoreChannel Partner/ Reseller/ DistributorHDP operates multiple hotels as Marriott franchisee under brands including Courtyard, Fairfield Inn & Suites, Residence Inn, SpringHill Suites, and TownePlace Suites. HDP principals include former Marriott COO Bob McCarthy.
• Hilton WorldwidenotableChannel Partner/ Reseller/ DistributorHDP operates Hampton Inn & Suites (Hilton brand) hotels in its portfolio, including the Atlanta Perimeter Center property developed as ground-up construction.
• Choice Hotels InternationalminorChannel Partner/ Reseller/ DistributorHDP's Fund I portfolio included a Sleep Inn hotel (Choice Hotels brand) in North Charleston, South Carolina.
• Fogo deChãominorOthersFogo deChão, a Brazilian steakhouse restaurant, was a retail outparcel tenant at the Residence Inn Atlanta Perimeter Dunwoody property developed by Fund II. The restaurant opened in August 2019 and was sold in September 2019.

Scale indicators8 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• Pebblebrook Hotel Trust: Public REIT (NYSE: PEB) that owns and acquires upper-upscale, urban, and resort hotels across the U.S. Comparable as a hotel-focused investment vehicle targeting premium-branded assets, though broader in scale and geography than HDP's fund-level approach.
• Sunstone Hotel Investors: Public REIT (NYSE: SHO) that invests in select-service and full-service hotels operated under major brands including Marriott, Hilton, and Hyatt. Comparable as a long-duration hotel investor with similar brand partnerships, but operating at REIT scale across full-service and select-service.
• Hersha Hospitality Trust: Public REIT (now private) focused on select-service and lifestyle hotels in urban and gateway markets. Comparable for its branded select-service focus, though more concentrated in coastal urban markets versus HDP's Southeast suburban approach.
• Chatham Lodging Trust: Public REIT (NYSE: CLDT) that invests in upscale extended-stay and select-service hotels, with a strong premium-brand focus including Residence Inn, Hilton, and Marriott flags. Direct brand overlap (Residence Inn, Marriott) makes this a closely comparable public peer.

Direct peers

• Concord Hospitality Enterprises: Hotel management and development company operating 140+ hotels across U.S. and Canada. Directly comparable as both a hotel developer and the management company for HDP's Jacksonville Residence Inn; operates in similar brand and segment space.
• Hotel Equities: Hotel management and investment firm that co-founded HDP and manages many of its properties. Direct peer as a Marriott franchisee and hotel operating platform, with overlapping team (Cerrone) and franchise relationships.
• White Lodging: Hotel development, ownership, and management company focused on Marriott, Hilton, and Hyatt select-service and full-service hotels. Comparable as a brand-franchise developer operating investment vehicles and management platforms.
• Driftwood Acquisitions & Development: Hotel acquisition and development firm that purchased 568-room Atlanta portfolio from HDP and an institutional partner in 2018. Comparable as an acquirer of select-service hotel portfolios with similar brand and segment focus.
• IRE Capital: Commercial real estate investment firm founded by Allen O'Brien that co-founded HDP and provides institutional investor relationships. Direct comparable as a real estate investment manager with hospitality exposure and LP network overlap.
• Carey Watermark Investors: Non-traded REIT that invested in hotels including select-service and extended-stay assets. Comparable as a private capital vehicle investing in branded hotels, with similar LP structure but broader diversification mandate.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hotel Development Partners