HEI Hotels & Resorts has acquired the 309-room Sheraton Dallas North out of REO, directly from a lender that foreclosed on the property. The buyer declined to disclose the purchase price.
The Sheraton isn’t the only upscale hotel to have faced foreclosure recently in the Dallas-Fort Worth area, nor in fact the only Sheraton to be bought out of foreclosure in Texas recently. Last year, lenders foreclosed on the posh Four Seasons Resort and Club Dallas at Las Colinas, though that 431-room luxury property on 400 acres hasn’t been sold out of foreclosure yet and is still operating.
Earlier this month, the historic Sheraton Gunter Hotel in San Antonio was bought back by an affiliate of JP Morgan Chase, its lender. In that case, there were no other bids at a foreclosure auction for the 102-year-old hotel.
According to HEI president Steve Mendell, his company will make various renovations to the property, “to align (it) with our portfolio of upper-upscale properties.” The property is HEI’s second hotel acquisition of 2011 and its sixth hotel under the Sheraton brand. Including the acquisition, the Norwalk, Conn.-based company currently owns 34 hotels under a variety of flags, such as Marriott, Westin, Le Meridien, Embassy Suites and Hilton.
The Sheraton Dallas North is in that city’s Galleria area, a shopping, dining and entertainment node not far from Dallas/Fort Worth International Airport. The Galleria district is home to a number of corporate headquarters, such as that of retailer Nordstrom, as well as regional offices of Highland Capital Management, ABC Broadcasting/Disney and Coca-Cola.