Howard Hughes has sold three hotels in master planned community, The Woodlands, to a joint venture (JV) between US-based Lowe and an institutional investor.
The acquired properties include The Woodlands Resort; The Westin at The Woodlands; and Embassy Suites by Hilton, The Woodlands at Hughes Landing.
The JV bought these three hotels in a deal valued at $252m.
CoralTree Hospitality, a subsidiary of Lowe’s hospitality management, will continue to manage the properties following the acquisition.
Lowe co-CEO Mike Lowe said: “The Woodlands hotel portfolio acquisition is consistent with our broader hospitality investment strategy that targets quality, full-service hotels and resorts that draw significant leisure travel, but also cater to corporate and group business.
“Located in a high-growth Houston submarket with strong demand and compelling demographics, the hotels and resort draw from multiple demand segments attracted by the appealing location, lakes, outdoor recreation and considerable amenities within The Woodlands.
“Business has grown steadily over the past five years and the hotels have weathered the downturn and are rebounding strongly.”
Meanwhile, Lowe also announced a $25m capital investment programme at the hotels.
Lowe and its partner plan to upgrade guest rooms, the meeting and conference space, and public areas, as well as add new facilities at the three properties.
The Woodlands Resort features 402 rooms, 90,000ft2 meeting space and other amenities including the family-oriented Forest Oasis waterpark.
The resort’s existing 10,000ft2 spa and dining and bar option are set to undergo transformation.
Built in 2015, Embassy Suites by Hilton, The Woodlands at Hughes Landing boasts 205 rooms, 3,500ft2 of group and event space, a business centre, a fitness facility, and other amenities.
The 302-room Westin at The Woodlands property offers a 24-hour fitness facility, more than 28,000ft2 of meeting and event space, and three food and beverage venues.
Furthermore, the sale of The Woodlands hotel portfolio is in line with Howard Hughes’ 2019 strategic initiative to dispose of non-core assets.
With this, it has reached $376m in net proceeds of the targeted $600m in the non-core assets’ sale.