Lowe Joint Venture acquires 3 hotels in the woods from Howard Hughes Corp.
THE WOODS, TX – A joint venture between Lowe and an institutional investor today announced the acquisition from The Howard Hughes Corporation® (NYSE: HHC) of three hotel assets located in The Woodlands®, an award-winning 28,500-acre planned community in the greater Houston area. 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 hotel management subsidiary, CoralTree Hospitality, which took over management of the properties in September 2020. Lowe will begin operations immediately a $ 25 million transaction. investment program in the three hotels, totaling 909 rooms.
“The acquisition of the Woodlands hotel portfolio is in line with our broader hospitality investment strategy, which targets quality, full-service hotels and resorts that attract significant leisure travel, but which are ‘are also aimed at companies and groups. Located in a high growth Houston submarket with high demand and compelling demographics, hotels and resorts tap into multiple demand segments attracted by attractive location, lakes, outdoor recreation, and resorts. Considerable amenities of The Woodlands. The business has grown steadily over the past five years and hotels have weathered the downturn and are rebounding strongly, ”said Mike Lowe, Co-CEO of Lowe.
With this sale, Howard Hughes successfully closed approximately $ 376 million of the $ 600 million in targeted net proceeds from the sale of non-core assets described two years ago. “The sale of our hotel assets to The Woodlands further advances the divestiture of non-core assets, as outlined in our 2019 strategic initiative,” said David R. O’Reilly, CEO of The Howard Hughes Corporation. “Lowe is recognized for its industry-leading quality service within the hospitality industry, and we are delighted to have found a buyer who shares our commitment to providing visitors to The Woodlands with a top-notch customer experience. “
Built in 1974, The Woodlands Resort is the original hotel for the planned community of The Woodlands. The AAA Four-Diamond property is an attractive 402-room resort set in a beautiful, expansive natural setting with plenty of attractive amenities, including the Forest Oasis family-friendly water park with its 1,005-foot Lazy River and 30-foot, 90,000-foot water slide. square feet of meeting space and a wide array of resort amenities. To strengthen the resort’s appeal and position in the market, Lowe and his partner intend to make a significant capital investment to redevelop and add new facilities. A key planned improvement is the top-to-bottom redevelopment of the existing 10,000 square foot spa, which will include repositioning the spa pool with remodeled indoor and outdoor spaces to provide a calming retreat. In addition, the fitness center will be expanded and modernized to enhance the wellness program. The resort will also undergo a transformation in dining and bar options, including a waterside lobby bar and the addition of a gourmet take-out market and general store, completing the repositioning and Recently completed redesign of Back Table Kitchen + Bar to provide a more engaging and contemporary dining experience.
In addition to being one of the area’s premier recreational destinations, the Woodlands Resort is the area’s premier meeting venue with 60,000 square feet of indoor group and social space, including a grand ballroom. 13,430 square feet. The 28,000 square feet of outdoor event space enjoys an unprecedented location overlooking Harrison Lake. The Forest Deck will be significantly upgraded to provide a distinctive outdoor location for group gatherings, receptions and weddings. The Woodlands Resort also has an extensive network of walking and biking trails and access to two championship golf courses and a world-class tennis center.
The 205-room Embassy Suites by Hilton, The Woodlands at Hughes Landing, built in 2015, offers a business center, fitness center, rooftop pool with views of Lake Woodlands and 3,500 square feet space for groups and events. Lowe plans to refresh the rooms and modernize some building systems to maintain its prominent position within the Embassy Suites brand. Located at Hughes Landing, an upscale 79-acre mixed-use development within The Woodlands community on the shores of Lake Woodlands, the hotel is close to a vibrant mix of shopping, entertainment, dining and businesses as well as boat rentals. The hotel offers the classic guest services for which Embassy Suites is famous: a free evening reception and breakfast to order.
The 302-room Westin at The Woodlands, built in 2016, is an AAA Four-Diamond property that offers modern amenities and facilities including a 24-hour fitness center, rooftop infinity pool, cabanas and fire pit, in-room massage, over 28,000 square feet of meeting and event space, and three food and beverage outlets. Lowe and his partner will invest in several property improvements, including bedrooms, meeting and conference space, and public spaces.
The contemporary hotel overlooks Waterway Square – a one-acre public plaza with captivating water features and green spaces that are the centerpiece of The Woodlands – and is within walking distance of 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 one of 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 of 13 Fortune 500 companies and offers over 24 million square feet of office, retail and business space. home, as well as 7,665 acres of open green space, 220 miles of connected hiking and biking trails and 151 parks.
The Lowe Company was represented by Greenberg Traurig while K&L Gates provided legal advice to The Howard Hughes Corporation. CBRE and JLL represented the seller in the transaction.
Los Angeles-based Lowe, formerly known as Lowe Enterprises, is a leading national property investment, development and management firm. Over the past 49 years, she has developed, acquired or managed over $ 32 billion in real estate assets nationwide as she pursued her mission to create value in real estate by creating innovative environments. and lasting and meaningful experiences that connect people and places. Lowe currently has over $ 2 billion in commercial real estate projects underway or under development. In addition to its headquarters in Los Angeles, Lowe has regional offices in Southern California, Northern California, Charleston, Denver, Seattle, and Washington, DC. Lowe’s hotel subsidiary, CoralTree Hospitality, operates numerous hotel and resort properties in the United States. For more information, visit www.Lowe-RE.com.
The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the United States. Its award-winning assets include the country’s preeminent portfolio of planned communities, as well as operating properties and development opportunities, including: New York City Seaport; Downtown Columbia®, Maryland; The Woodlands®, The Woodlands Hills® and Bridgeland® in the Greater Houston, Texas area; Summerlin®, Las Vegas; and Ward Village® in Honolulu, Hawai’i. Howard Hughes Corporation’s portfolio is strategically positioned to respond and accelerate development based on market demand, making it one of the strongest real estate platforms in the country. Dedicated to creating innovative spaces, the company is recognized for its ongoing commitment to design excellence and the cultural life of its communities. Howard Hughes Corporation is listed on the New York Stock Exchange as HHC. For more information, visit www.howardhughes.com.
Launched in December 2018, CoralTree Hospitality is a wholly owned subsidiary of Lowe, a Los Angeles-based real estate investment, management and development company. Colorado-based CoralTree offers distinctive and memorable experiences that celebrate each property’s environment, culture, and community. CoralTree was named one of the top 20 hotel management companies in the United States after just one year in business by Hotel Business magazine. The company provides marketing licensing, hospitality and asset management services to 22 hotels and resorts in the United States. The collection includes independent, branded and flexible brand properties such as Terranea Resort on the Southern California Coast, Hotel Lincoln in Chicago, The Woodlands Resort in Houston, Suncadia in Cle Elum, Washington and the new Eddy Taproom & Hotel in Golden, Colo. The company is also overseeing the creation of the Lake Nona Wave Hotel in Orlando, Florida, scheduled to open in late 2021. For more information on CoralTree, visit www.CoralTreeHospitality.com