Flacks Group closed its acquisition of the DoubleTree by Hilton Augusta this week, with StepStone Hospitality assuming management duties immediately. The transaction marks Flacks' continued expansion into Hilton-branded select-service properties in mid-tier southeastern markets. Neither party disclosed purchase price or per-key valuation.
The DoubleTree Augusta operates 199 rooms in Georgia's second-largest metro area, a market anchored by the Masters Tournament and steady medical-sector demand from Augusta University Medical Center. The property sits within the Riverwatch complex along the Savannah River, adjacent to convention space that draws 85,000 annual attendees across corporate and regional association events. StepStone Hospitality, which manages 41 properties across 14 states, adds a Hilton flag to a portfolio weighted toward Marriott and IHG brands.
The deal follows a pattern. Private buyers with regional operating theses are acquiring select-service hotels in markets where RevPAR volatility is lower than gateway cities but upside remains from group and extended-stay business. Augusta's hotel market posted 68.2% occupancy in 2024, outperforming the national average by three points, according to STR data. The city's $2.1 billion cybersecurity corridor expansion—anchored by Fort Eisenhower and the National Security Agency's Georgia facility—provides a demand floor that institutional buyers underwrite but private operators execute against more aggressively. Flacks is betting that owning the asset and pairing it with an experienced third-party manager extracts more margin than delegating both tasks.
StepStone's model is relevant here. The firm operates properties it does not own, allowing asset holders like Flacks to maintain balance-sheet control while outsourcing labor management, revenue optimization, and brand compliance. In markets where labor costs are rising but not catastrophic—Augusta's hospitality wages average $14.80 per hour, below Atlanta's $17.20—this structure works when the operator has local relationships and can staff efficiently. StepStone's existing Southeast footprint includes properties in South Carolina and North Carolina, making Augusta a logical add without requiring new regional infrastructure.
Watch for additional Flacks acquisitions in similar markets over the next six to nine months. The group's strategy appears to target properties in the $15 million to $25 million range where sellers are fatigued from operational complexity but the assets still command premium Hilton or Marriott flags. StepStone's pipeline likely includes management agreements tied to these deals, as their platform scales best when adding clusters rather than one-offs. Also worth tracking: whether Flacks pursues debt refinancing on this asset once StepStone's operational changes settle in, typically 12 to 18 months post-acquisition. If margins improve, a refi could pull equity out for the next deal.
The Augusta cybersecurity corridor will open 1.2 million square feet of additional federal and contractor office space by late 2026, according to Fort Eisenhower planning documents. That timeline matters.