The JV plans to immediately sink $5 million into renovating the property. A Charlesbank spokeswoman tells GlobeSt.com that the partners have financed up to 65% of the acquisition and renovation costs through GE Capital, the details of which weren't available by publication time. The property was sold by Amgreen Partners of San Antonio, which acquired the hotel in June 2000.
The Cleveland-based Concord Hospitality Enterprises Co., which has a standing relationship with Winston and Charlesbank and has a 13% minority stake in the hotel, sourced the deal and took it to the JV. With the sale now closed, Concord is the hotel's new operator.
The 19-year-old hotel, positioned on 2.8 acres, will be renovated inside and out, including a change from a bar and restaurant to family dining. Winston Hotels will manage the renovations.
"The Best Western property is a well-situated hotel with a number of excellent demand generators, including the nearby Medical Center," Joe Green, Winston's CFO, says in a press release. "We believe that with the significant upgrade and conversion to the SpringHill Suites brand we can optimize its location and appeal to a wider customer profile."
Last year, Charlesbank and Winston, along with Concord Hospitality, bought the 113-room Beachwood Courtyard, a Marriott hotel located in the Cleveland suburb of Beachwood, and the 103-room Wingate Inn, now flying a Fairfield Inn & Suites flag, in West Des Moines, IA. Andy DiMatteo, Charlesbank's senior vice president for real estate, says both properties are performing well despite the soft economy. "With Winston we are aggressively seeking properties with strong repositioning potential, and we are pleased to have found such an attractive investment opportunity in Houston," DiMatteo says in the release.
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