CGI Merchant Group, LLC (CGI announced yesterday the acquisition of the lease of the historic Old Post Office building in Washington, D.C. Located at 1100 Pennsylvania Avenue, the iconic property opened in 1899 as Washington’s main post office, DC, later converted into a Federal Post Office office building and more recently turned into a hotel.CGI, in partnership with Hilton, plans to relaunch the property as part of the iconic Waldorf Astoria Hotels & Resorts brand.
This is the fourth hotel transaction completed through CGI’s Hospitality Opportunity Fund I, LP (H Fund), which aims to acquire and develop a unique collection of mindful hotel properties in North America and in the Caribbean. In Washington, DC’s competitive real estate market, the acquisition of this property offers a unique opportunity to combine CGI’s mission to improve the communities in which it invests with the luxury brand Waldorf Astoria to optimize future value.
Construction on the historic property began in 1892. Built in a Romanesque Revival architectural style, it functioned as Washington DC’s main general post office until 1914, when it functioned as a federal office building. There are 95 years left on the lease, which was acquired with the approval of the property’s owner, the US General Services Administration (GSA).
All properties purchased and/or developed through Fund H will be labeled as part of CGI’s Conscious Certified Hotels (CCH) and housed within Hilton’s world-class portfolio of brands. As CCH, the Waldorf Astoria Washington, DC will aim to create an authentic guest experience that connects the core values of the conscious traveler with positive and measurable community impact.
“This acquisition marks an important step for CGI in our quest to rewrite the meaning of return on investment,” said Raoul Thomas, CEO and Founder of CGI. “We are thrilled to partner with our friends at Hilton to bring the Waldorf Astoria brand to an iconic landmark in the Nation’s Capital and look forward to working closely together to have a lasting and positive impact on the Washington, DC community. “
“Hilton is committed to serving any guest, with any travel need, anywhere in the world – and we are thrilled to partner with CGI to expand our presence in the nation’s capital,” said Chris Nassetta, President and CEO, Hilton. “Waldorf Astoria properties – and our team members – offer a unique sense of place and an incredible commitment to personalized service at more than 30 iconic locations around the world, and this hotel will be a perfect representation of our brand. We look forward to sharing our signature hospitality with travelers to this iconic destination.”
Other recent acquisitions made by the H Fund include The Gabriel Miami and The Gabriel South Beach, both Curio Collection by Hilton hotels. CGI also recently announced a partnership with Morris Brown College, a historically black college and university in Atlanta, and Hilton to develop a 150-key high-end hospitality and hotel management training complex directly on campus.
The Waldorf Astoria Washington, DC is expected to open in early summer.