THE WOODLANDS – (Realty News Report) – A joint venture between Los Angeles-based Lowe and an institutional investor has acquired three hotels in The Woodlands for $252 million.
The seller was The Howard Hughes Corporation, the developer of The Woodlands, a 28,500-acre master-planned community about 27 miles north of downtown Houston.
Lowe announced it will begin a $25 million capital improvement program across the three hotels, which total 909 guest rooms. The properties included in the acquisition 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 Corporation, a publicly traded company on the New York Stock Exchange that owns several master-planned communities and other real estate assets nationwide, sold the hotels as part of an initiative to divest “non-core assets.”
In a press release the developer noted: “With this sale, Howard Hughes has successfully closed on approximately $376 million of the targeted $600 million in net proceeds from 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.
The hotels will continue to be managed by Lowe’s hospitality management subsidiary, CoralTree Hospitality.
The Woodlands Hotels Sold
The Woodlands Resort – Opened in 1974, The Woodlands Resort is the original hotel within The Woodlands master-planned community. The 402-room resort features approximately 90,000 square feet of meeting and event space, a broad range of resort amenities, and a lazy river water attraction.
Embassy Suites by Hilton, The Woodlands at Hughes Landing – Built in 2015, the 205-room Embassy Suites at Hughes Landing offers business facilities, a fitness center, a rooftop pool with views of Lake Woodlands, and about 3,500 square feet of group and event space. Lowe plans to refresh guest rooms and upgrade select building systems.
The Westin at The Woodlands – Completed in 2016, the 302-room Westin features a rooftop infinity pool and more than 28,000 square feet of meeting space. The property overlooks Waterway Square, a one-acre public plaza at the heart of the development.
CBRE and JLL represented The Howard Hughes Corporation 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 across Southern and Northern California, Charleston, Denver, Seattle, and Washington, D.C.
“The Woodlands hotel portfolio acquisition aligns with our broader hospitality investment strategy, which targets high-quality, full-service hotels and resorts that attract significant leisure travel while serving corporate and group business,” said Mike Lowe, co-CEO of Lowe. “Located in a high-growth Houston submarket with strong demand and attractive demographics, these hotels and the resort draw from multiple demand segments due to the appealing location, lakes, outdoor recreation and the many amenities within The Woodlands. Business has grown steadily over the past five years, and the hotels have weathered the downturn and are rebounding strongly.”
Lowe also participates in the 11,000-acre Lake Nona master-planned community in Orlando, Florida, where the company is overseeing development 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