However, HEI recognizes the hotel isn't at the epicenter of the metroplex. "It's out there, but it's well positioned from a group meeting perspective. With the Bass family stepping in, we feel very good about the immediate neighborhood being built up in a couple years," Lee says. "And with our neighbor to the south being Alliance and Ross Perot Jr., we are very comfortable."

Lee says the Marriott re-branding will begin immediately, first with soft goods and signs and then construction in the fall. The hotel has 22,000 sf of function space, 5,800 sf of terrace space for outdoor ceremonies and receptions and a café and lounge. Work tentatively is slated for completion in March 2009.

Doug Sutton, vice president of Austin-based Source Strategies, says the hotel's last available stats are third quarter 2007, which shows occupancy at 60.5%. Its RevPAR was $71.02, up $2.89 from the Q3 2006. The average daily room rate was $117.33. In contrast, the similarly sized DFW Airport Marriott at 8440 Freeport Pkwy. in Irving is sporting a $99.27 RevPAR.

The Marriott re-branding "unto itself is a good thing," Sutton says. "There's definitely an opportunity there to push up, with the brand loyalty to get meetings and conferences." He says a Source Strategies' study has shown that "the Marriott name can make a 20% difference" in returns.

Lee confirms that HEI has already huddled with Marriott's regional sales team over increasing the asset's group meeting business. With the brand already a strong performer in the region, he says "having a conference-oriented facility with a golf course is a unique amenity." And, he says HEI is counting on the brand to boost occupancy, which he pegs in the low 60% range.

Lee says the hotel was the last purchase for the $425-million HEI Acquisition Fund II. The closing was made with a loan from Capmark Finance Inc., the first transaction between the lender and borrower. But, Lee says, it won't be the last one. A team from Cushman & Wakefield Sonnenblick Goldman marketed the hotel. Lee says HEI moved to close the deal in a three-month start to finish.

The hotel is HEI's first asset in Dallas/Fort Worth. Lee says it's eyed as an eight-to 10-year hold. Two years ago, HEI bought the 410-key Crowne Plaza Riverwalk San Antonio at 111 E. Pecan St. and last year it acquired the 365-room Sheraton Austin at 701 E. 11th St. And, Lee says it's not done shopping in Texas, adding HEI is looking in Houston while continuing to scout the other three metros.

"We are looking for opportunities where we can really create value through capital improvements and management," Lee says. With its second fund now closed, he says a campaign is under way to raise $450 million to $500 million for HEI Acquisition Fund III.