Lowe Joint Venture Acquires Three Hotels In The Woodlands,Texas From The Howard Hughes Corporation
Main Photo: The Woodlands Resort
Date: September 2021
Name: The Woodlands Resort, The Westin at The Woodlands, Embassy Suites by Hilton, The Woodlands at Hughes Landing
Location: The Woodlands at Hughes Landing, Houston, Texas, USA
Number of Keys: 402, 302 and 205 – 909 in Total
Seller: The Howard Hughes Corporation
Buyer: Lowe Joint Venture
A joint venture between Los Angeles-based investment and development firm Lowe and an unnamed institutional investor has purchased three hotels in The Woodlands, a 28,500-acre community in the greater Houston area from The Howard Hughes Corp.
The Woodlands Resort; The Westin at The Woodlands; and Embassy Suites by Hilton, The Woodlands at Hughes Landing were purchased for $252 million and will continue to be managed by Lowe’s hospitality management subsidiary, CoralTree Hospitality, which took over management of the properties in September of 2020. Lowe will immediately begin a $25 million capital investment program at the three hotels, totalling 909 rooms.
“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.
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 Corporation. “Lowe is recognised for its leading quality service within the hospitality industry, and we are pleased to have found a buyer who shares our commitment to providing visitors to The Woodlands with a best-in-class customer experience.”
Built in 1974, The Woodlands Resort is the original hotel in The Woodlands master planned community. The AAA Four-Diamond property is a resort with 402 rooms in a natural setting. Its amenities include the family-oriented Forest Oasis waterpark with its 1,005-foot Lazy River and 30-foot waterslide, 90,000 square feet of meeting space and a wide array of resort amenities. To further the resort’s appeal and market position, Lowe and its partner intend to make a significant capital investment to redevelop and add new facilities inckluding a redevelopment of the existing 10,000-square-foot spa.
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 to maintain its best-in-class position within the Embassy Suites brand. Located in Hughes Landing—a 79-acre upscale mixed-used development within The Woodlands community on the shore of Lake Woodlands—the hotel is proximate to a vibrant mix of shopping, entertainment, dining and businesses as well as boat rentals.
The 302-room Westin at The Woodlands, built in 2016, is a AAA Four-Diamond property that provides modern amenities and facilities including a 24-hour fitness facility, a rooftop infinity pool, cabanas and firepit, in-room massage, more than 28,000 square feet of meeting and event space, and three food and beverage outlets. Lowe and its partner will invest in several property upgrades including the guest rooms, the meeting and conference space, and public areas. The hotel overlooks Waterway Square—a one-acre public plaza with captivating water features and green spaces that serve as the centerpiece of The Woodlands—and sits just steps from upscale shopping, fine dining and world-class entertainment.
The Woodlands is a 28,500-acre community located 27 miles north of Houston’s central business district. Since its inception in 1974, it has been among the most successful developments of its kind in the United States. Consistently recognized as one of the best places to live in the country, The Woodlands is a thriving business community with a major presence by 13 Fortune 500 companies and offers more than 24 million square feet of office, retail and hospitality, along with 7,665 acres of open green space, 220 miles of connected hike and bike trails, and 151 parks.
The Lowe venture was represented by Greenberg Traurig while K&L Gates provided legal counsel to The Howard Hughes Corporation. CBRE and JLL represented the seller in the transaction.
Price: $252 million
Price per Key: $277,277
THPT Comment: This much-delayed sale has prompted some commentators to ask how much HH Corp would have received if they had sold them two years ago when they were supposed to?
First Seen: https://www.hotel-online.com/
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