Electra America Hospitality Group, a joint venture between Electra AmericaandAKA, has acquired a former 178-key Holiday Inn & Suites in Alexandria, Va.

The price was not disclosed. The hotel was last acquired in 2016 for $37.8 million byHI Alexandria Owner LLCfromCarr Properties.

The joint venture confirmed that it would invest nearly $36 million in the renovation of the hotel, keeping with its strategy of converting underperforming hotels in gateway markets into four-star hotels.

Our goal is to deliver a high-quality product, offering extended-stay and short-term options to a market that is very balanced, though underperforming in terms of hotel product, Larry Korman, AKAs president and co-CEO of Korman Communities, told Commercial Observer. What attracted us to the property is that it offers expansive, common space square footage, which will allow us to create a unique offering with robust amenities catering to a diverse and sophisticated clientele.

The property will also add an iconic destination restaurant.

Located at625 First Street in Old Town, the hotel is just a short commute to the new amazon HQ2, new Virginia TechInnovation CampusRonald Reagan Washington National Airport and theU.S. Capitol.

We feel its location will draw significant business from high-end submarkets nearby, Korman said. The location also has a calming, historic feel and is in close proximity to D.C., where AKA also has an existing property.

Russ Urban, Electra America Hospitality Groups CEO, told CO that with a limited supply of luxury product in nearby markets, the joint venture expects the hotel to draw significant business from other large office/government submarkets nearby, including Crystal City and Pentagon City.

In May, Electra America Hospitality Group acquired the Roger New York, a 194-room boutique hotel in the heart of Manhattans NoMad neighborhood, for $19 million, which will undergo $22 million in renovations this year.