Lowe Enterprises Investors Acquires Hotel Derek in Houston
Lowe Enterprises Investors (LEI) has acquired the Hotel Derek, a 314-room independent boutique hotel in the 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. Concurrent with the sale, LEI affiliate, Destination Hotels & Resorts, will take over the hotel management. READER COMMENTS
“Hotel Derek is an ideal fit for our hotel investment venture, which targets well-located, 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, in an announcement.
Adding to the hotel’s value is the comprehensive capital improvement program completed by a previous owner that updated the entire hotel from infrastructure and systems to guest rooms and public spaces. 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 loft-style rooms at the property 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.
The seller was represented by Eastdil Secured. Lowe Enterprises Investors represented itself in the transaction. Wells Fargo Bank provided debt financing in the transaction.