AWH Partners acquires Hotel Trio

AWH Partners has completed the acquisition of Hotel Trio Healdsburg, an all-suite, 122-key hotel in Northern California, for $38 million. The move marks the first purchase under the firm’s Strategic Income Fund, which AWH launched in late 2025, highlighting its targeted approach to acquiring properties in promising markets. Hotel Trio, a soft-branded Residence Inn, is the only Marriott-branded property in Northern Sonoma, known for its limited hospitality options yet high visitor demand.

The transaction values each hotel key at approximately $311,475, substantially below the estimated replacement cost of $500,000 per key in Sonoma County. This pricing reflects AWH Partners' strategy of identifying potential high-yield investments via data-driven, AI-supported research. Russ Flicker, co-founder of AWH Partners, noted in a statement that the acquisition aligns with their criteria for investing in "recent-vintage, high-quality assets" in affluent leisure destinations, especially those benefiting from economic growth in regions like the greater Bay Area.

Strategically, AWH Partners anticipates that Hotel Trio will generate significant returns, projecting an average annual dividend of over 8% and a net levered internal rate of return of 17.4%. The firm views the property as competitively positioned due to its upscale all-suite nature and Marriott branding, appealing to a broad demographic visiting Sonoma. The scarcity of hotel rooms in the area, combined with the proximity to AI and tech-driven economic growth in the Bay Area, supports AWH's optimistic investment outlook, according to co-founder Chad Cooley.

The acquisition underscores a selective investment strategy for AWH, which has been cautious in its acquisitions despite evaluating numerous opportunities. It follows the firm’s June 2022 acquisition of a dual-branded hotel in Broomfield, Colorado, as part of its post-COVID investment strategy. Co-founder Jon Rosenfeld expressed expectations for future opportunities as market conditions shift toward more favorable financing and cap rates, suggesting AWH is poised for further strategic acquisitions.

Hotel Trio will be operated by Spire Hospitality, AWH's wholly owned subsidiary. As tourism continues to expand in Sonoma County, which welcomed 10.3 million visitors in 2024 with expenditures reaching $2.44 billion, AWH Partners is likely to benefit from these economic tailwinds. The region's combination of dining, winery attractions, and proximity to San Francisco forms a compelling backdrop for the firm's latest acquisition venture.