During its six-year hold, the selling partnership had invested about $15 million into upgrades of the hotel at 2525 W. Loop South. Thomas Fisher, managing director for Jones Lang LaSalle Hotels' Chicago office, says market timing and fund parameters prompted partners Angelo, Gordon & Co. in New York City and Amerimar Enterprises Inc. from Philadelphia to sell the asset.
"We received close to 10 bids on the project," says Fisher, who teamed with Jeffrey Davis, JLL Hotels' executive vice president in New York City. Fisher tells GlobeSt.com that the Warburg-Crestline joint venture provided management expertise as well as a strong fund looking for solid real estate assets for investment. "This partnership saw an opportunity to continue the asset's continued growth and market penetration," he adds.
Crestline Hotels & Resorts, headquartered in McLean, VA, will take over the hotel's management from Amerimar Enterprises. Fisher says the new owners most likely will make some minor upgrades to the hotel, but no major renovations are needed.
Westheimer Hotel LP acquired the hotel from Hilton Hotels Corp. in 2001 for $20 million. Amerimar managed the 2.5-acre asset, changing its name to Hotel Derek. The hotel averages 70% occupancy; the daily room rate is $139.
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