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HEI Hotels & Resorts Acquires Hanover Marriott

WHIPPANY, NJ-The $27-million acquisition is the first for HEI's third investment fund, which has an additional $500 million of equity at its disposal.

By Alyson Grala | Updated on August 25, 2009

WHIPPANY, NJ-Private hotel owner HEI Hotels & Resorts has acquired the 353-room Hanover Marriott here from Host Hotels & Resorts Inc. for $27 million. The hotel will undergo a $20-million renovation to upgrade all public and private spaces, including the introduction of Marriott’s Great Room concept.

“This marks the first acquisition of our third investment fund, the $515-million HEI Hospitality Fund III LP, which was raised in early 2008,” executive vice president of acquisitions Steve Mendell tells GlobeSt.com. “We will continue to seek top-branded hotels in markets with barriers to new entry that we can acquire at below-replacement cost and which will benefit from improved operations,” he says, adding that the Hanover Marriott is representative of the type of assets being targeted for Fund III.

Located at 1401 Route 10 E. in Morris County, the hotel is less than 30 minutes from New York City and is surrounded by more than 12 million square feet of office space. Guestrooms include Marriott’s signature Revive Collection, well-lit work desk with high-speed Internet access and bathrooms with granite vanity tops.

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