Lowe Enterprises Investors Buys 314-Room Boutique Hotel in Galleria Area
- Jul 06, 2012
The 314-room Hotel Derek recently traded hands, with its acquisition by Lowe Enterprises Investors on behalf of a national hotel investment venture the firm formed last year with The Guardian Life Insurance Co. of America and a subsidiary of Allstate Insurance Co.
The 14-story Derek Hotel, conveniently located in the prominent Galleria area of Houston at 2525 West Loop South, consists of 314 luxurious loft-style rooms, including 10 suites and 16 business studio rooms. Hotel guests can also benefit from 10,000 square feet of meeting space and a 4,800-square-foot ballroom that can accommodate seated dining for 360 or a reception for 500. Other amenities include a business center, fitness center, outdoor pool and deck, and the Valentino Restaurant and Vin Bar.
“Hotel Derek is an ideal fit for our hotel investment venture, which targets well-located, full-service hotels in major metropolitan markets. It presents the opportunity to invest in a quality, modern boutique hotel property in an affluent submarket of Houston, one of the top hotel markets in the country,” said Bradford Howe, CEO of Lowe Enterprises Investors, in a press release. Adding to the hotel’s value is the comprehensive capital improvement program completed by a previous owner that updated the entire hotel, from infrastructure and systems to guest rooms and public spaces.
Nevertheless, Lowe Enterprises plans on making further improvements to the property, at an estimated $4.5 million. Renovation work will include refreshing the guest rooms and common areas and enhancing the meeting space, as well as updating on-site technology.
Destination Hotels & Resorts—an affiliate of Lowe Enterprises Investors—will be taking over hotel management. The seller was represented by Eastdil Secured, while Lowe Enterprises Investors represented itself in the transaction. Debt financing was provided by Wells Fargo Bank.
For more on this deal, see “Lowe Enterprises Buys Hotel Derek” on CPExecutive.com.
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