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GlobeSt.com UPDATE: JER Partners Plans $2M Capital

COLLEGE STATION, TX-The new owner of the 303-room Hilton College Station & Conference Center will sink $1.5 million into the 20-year-old hotel to upgrade conference facilities and meeting space.

By Jennifer D. Duell | Updated on January 19, 2005

COLLEGE STATION, TX-JER Partners outlined its plans for the recently acquired Hilton College Station & Conference Center. The McLean, VA-based investment company will spend an additional $1.5 million to improve the hotel’s conference facilities and meeting space, says Alex Gilbert, director of JER Partners. “We think the hotel offers excellent cash on cash returns,” he tells GlobeSt.com, adding that it also provides value-added opportunities.

According to Gilbert, JER acquired the site at a significant discount to replacement value. “We think replacement value would be $140,000 to $150,000 per key,” he says. The firm paid roughly $69,300 per key.

The hotel, which was acquired at a 10% cap rate, recently underwent a $5.4 million renovation of guest rooms, lobby and common areas. It boasts 28,399 sf of meeting space and an 11,360-sf ballroom.

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