Simon (SPG) Opens AC Hotel In Buckhead, Atlanta

Simon Property Group Inc. (NYSE:SPG) , in association with Noble Investment Group, declared the debut of renowned AC Hotels by Marriott brand at Phipps Plaza in the Buckhead district of Atlanta. This move comes as part of the company’s focus on enhancing the value of its premium properties as well as including coveted brands to drive traffic at its shopping mall.

AC Hotels is situated at the intersection of Peachtree Road and Wieuca Road, adjacent to Nordstrom at Phipps Plaza. This addition seems a strategic fit because AC Hotels – founded in 1998 – is one of the most coveted hotel brands throughout Europe. Further, this AC Hotel by Marriott Buckhead is the brand's first hotel in Atlanta and only its eighth in the United States.

Simon’s Phipps Plaza has undergone a revamp, where its Peachtree Road entrance has been renovated, with a frontage of storefronts representing some of the most sought-after brands. This upscale shopping destination boasts of a diverse and exclusive mix of fashion and luxury retail stores, plus dining and entertainment options. The mall is anchored by Nordstrom, Inc. (NYSE:JWN) , Saks Fifth Avenue and Belk.

Together with this, the Phipps Plaza's enhancement project – the "Domain at Phipps Plaza" –promises to give a robust facelift. It would result in addition of 319 mid-rise, urban-style luxury residences, slated to open in phases commencing this fall.

Notably, Simon Property has been active in restructuring its portfolio and is aiming premium acquisitions and redevelopments. Recently, the company celebrated the opening of the 155,000-square-foot expansion at the iconic King of Prussia Mall situated around 25 miles northwest of Philadelphia. (Read more: Simon Property Opens King of Prussia Mall Expansion)

In fact, at the end of the second quarter, the company had redevelopment and expansion projects in progress at 33 properties across the U.S. and Europe, with share of costs worth around $2.1 billion. It is expected to effectively leverage the improving spending habits of wealthier customers with such a pipeline of projects, when the economy is showing signs of recovery.

Simon Property currently has a Zacks Rank #3 (Hold).

Investors interested in the retail REIT industry may consider stocks like Acadia Realty Trust (NYSE:AKR) and Pennsylvania Real Estate Investment Trust (NYSE:PEI) . Both the stocks holds a Zacks Rank #2 (Buy).