HOUSTON ? Lowe Enterprises Investors (LEI) has acquired the Hotel Derek, a 314-room independent boutique hotel in the prominent Galleria area of Houston, on behalf of a national hotel investment venture LEI formed last year with The Guardian Life Insurance Company of America and a subsidiary of Allstate Insurance Company.
The 14-story hotel is located at 2525 West Loop South. Concurrent with the sale, LEI affiliate, Destination Hotels & Resorts, will take over the hotel management.
?Hotel Derek is an ideal fit for our hotel investment venture, which targets welllocated, 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 W. Howe, CEO of LEI.
LEI plans to make further improvements, investing at least $4.5 million in the property. It will refresh the guest rooms and common areas and enhance the meeting space, including updating the technology.
The Hotel Derek, in the heart of Houston?s Galleria district, offers convenient access to a host of premier shopping, dining and entertainment venues as well as the city?s major businesses. Its spacious and luxurious loft-style rooms include 10 suites and 16 business studio rooms. The hotel provides guests with a business center, fitness center, outdoor pool and deck and the Valentino Restaurant and Vin Bar.
With 10,000 square feet of meeting space the hotel offers a variety of options for groups large and small. The 4,800-square-foot ballroom can accommodate dining seating for 360 or a reception for 500 and can be divided into smaller meeting rooms.
?In a market that is otherwise heavily concentrated with branded hotels the Hotel Derek stands out as a rare boutique property. Its convenient location and modern style coupled with its meeting space options make the Hotel Derek an ideal choice for groups as well as business and leisure travelers,? noted Russell Munn, senior vice president of LEI.
LEI also owns, on behalf of an investment client, the Hotel Driskill in Austin. Destination Hotels & Resorts is known for operating premier boutique hotel properties.
The seller was represented by Eastdil Secured. Lowe Enterprises Investors represented itself in the transaction. Wells Fargo Bank provided debt financing in the transaction.