THE WOODLANDS – (Realty News Report) – A joint venture between the Los Angeles-based Lowe real estate firm and an institutional investor acquired three hotels in The Woodlands for $252 million.
The seller was The Howard Hughes Corp., the developer of The Woodlands, a 28,500-acre master planned community about 27 miles north of downtown Houston.
Lowe said it will immediately begin a $25 million capital improvement program at the three hotels, totaling 909 rooms. The three hotels are: (1) The Woodlands Resort; (2) The Westin at The Woodlands; and (3) Embassy Suites by Hilton, The Woodlands at Hughes Landing.
The Howard Hughes Corp., which is traded on the New York Stock Exchange, owns a number of master planned communities and other real estate across the country, sold the hotels as part of its ongoing plan to sell-off so-called “non-core assets.”
In a press release, the developer said: “With this sale, Howard Hughes has successfully closed on approximately $376 million of the targeted $600 million net proceeds in the sale of non-core assets outlined two years ago. “The sale of our hotel assets in The Woodlands further advances the disposition of non-core assets as outlined in our 2019 strategic initiative,” said David R. O’Reilly, CEO of The Howard Hughes Corp.”
The hotels will continue to be managed by Lowe’s hospitality management subsidiary, CoralTree Hospitality.
The Woodlands Hotels Sold
The Woodlands Resort– Built in 1974, The Woodlands Resort is the original hotel in The Woodlands master planned community. The 402-room hotel has 90,000 SF of meeting space and a wide array of resort amenities and a Lazy River water ride.
Embassy Suites by Hilton, The Woodlands at Hughes Landing. The 205-room Embassy Suites by Hilton, The Woodlands at Hughes Landing, built in 2015, offers a business center, fitness facility, rooftop pool with views of Lake Woodlands, and 3,500 square feet of group and event space. Lowe plans to refresh guest rooms and upgrade some building systems.
The Westin at The Woodlands. The 302-room Westin at The Woodlands, built in 2016, has a rooftop infinity pool and more than 28,000 SF of meeting space. The hotel overlooks Waterway Square—a one-acre public plaza.
CBRE and JLL represented Howard Hughes Corp. in the transaction.The Lowe venture was represented by Greenberg Traurig while K&L Gates provided legal counsel to The Howard Hughes Corporation.
Lowe, formerly known as Lowe Enterprises, maintains regional offices in Southern California, Northern California, Charleston, Denver, Seattle, and Washington, DC.
“The Woodlands hotel portfolio acquisition is consistent with our broader hospitality investment strategy that targets quality, full-service hotels and resorts that draw significant leisure travel, but also cater to corporate and group business. Located in a high-growth Houston submarket with strong demand and compelling demographics, the hotels and resort draw from multiple demand segments attracted by the appealing location, lakes, outdoor recreation and considerable amenities within The Woodlands. Business has grown steadily over the past five years and the hotels have weathered the downturn and are rebounding strongly,” said Mike Lowe, co-CEO of Lowe.
Lowe is also involved in the 11,000-acre Lake Nona master planned community in Orlando, Fla. where Lowe is overseeing the creation of the Lake Nona Wave Hotel, scheduled to open in late 2021.
Sept. 17, 2021 Realty News Report Copyright 2021
Photo courtesy Howard Hughes Corp.
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File: The Woodlands Hotels Sold for $252 Million