HEI is planning a $7 million renovation to upgrade the guest suites, bathrooms, corridors, lobby and public space, building exterior, and to modernize some of the facilities and systems. It won't be closing the hotel for the renovations. Located at the crossroads of the Capital Beltway and the Dulles Toll Rd., the eight-story property also has 1,770-sf of meeting space, an atrium bar and restaurant, fitness center and business center.

This is HEI's second acquisition in the Northern Virginia submarket. The company likes the submarket and like many investors interested in the Tysons Corner market is particularly intrigued by the opportunities expected to arise once the Metro stations there are completed. According to Roger Clark, HEI's SVP of acquisitions, one metro stop will be in front of the hotel. The company also likes the high barriers to entry in the dense submarket.

"Tyson's Corner is home to seven Fortune 500 companies, 22 million sf of office space, and more than 5.6 million sf of retail space, all within a short distance of the hotel," he says. "That kind of density offers real barriers to new supply, and a full-service hotel has not been added to the area in 20 years."