CGI Merchant Group, LLC (CGI), a global investment management firm with a focus on commercial real estate, announced its acquisition of the lease to the historic Old Post Office building in Washington, D.C. Located at 1100 Pennsylvania Avenue, the iconic property opened in 1899 as Washington, D.C.’s main post office, later converted to a federal office building and more recently became a hotel. CGI, in partnership with Hilton, plans to relaunch the property as part of the iconic Waldorf Astoria Hotels & Resorts brand.
This marks the fourth hotel deal completed through CGI’s Hospitality Opportunity Fund I, LP (H Fund), which aims to acquire and develop a first-of-its-kind collection of consciously minded hotel properties throughout North America and the Caribbean. In Washington, D.C.’s competitive real estate market, the acquisition of this property presents a unique opportunity to pair CGI’s mission to improve communities where it invests with the luxury Waldorf Astoria brand to optimize future value.
Construction on the historic property began in 1892. Built in a Romanesque Revival architectural style, it functioned as Washington D.C.’s main General Post Office until 1914, at which point it functioned as a federal office building. There are 95 years remaining on the lease, which has been acquired with approval from the owner of the property, the U.S. General Services Administration (GSA).
All properties purchased and/or developed through the H Fund will be labeled as part of CGI’s Conscious Certified Hotels (CCH) and housed within Hilton’s portfolio of world-class brands. As a CCH, the Waldorf Astoria Washington, D.C. will aim to create an authentic experience for guests that connects the core values of the conscious traveler with positive, measurable community impact.
“This acquisition marks a major milestone 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, D.C. community.”
“Hilton is committed to serving any guest, for any travel need they have, anywhere in the world – and we’re thrilled to partner with CGI to expand our presence in the nation’s capital,” said Chris Nassetta, President & CEO, Hilton. “Waldorf Astoria properties – and our Team Members – offer a unique sense of place and an incredible commitment to personal service in more than 30 landmark locations worldwide, 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.”