Brentwood-based Lowe, formerly Lowe Enterprises, and an institutional investor have paired up to acquire three properties from Howard Hughes Corp. for $252 million.
The properties acquired were the 402-room Woodlands Resort, the 205-room Embassy Suites by Hilton and the 302-room Westin. All three properties are part of The Woodlands, a 28,500-acre master-planned community in the greater Houston area.
Lowe and an unnamed institutional investor plan to invest $25 million to improve the properties. The largest of the properties, The Woodlands Resort, will see its spa overhauled, get a new pool facility and updated food and beverage offerings.
CoralTree Hospitality, Lowe’s hotel management subsidiary, took over management of the hotels last year.
“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,” Mike Lowe, co-chief executive of Lowe, said in a statement.
He added that the Houston market benefits from “multiple demand segments,” including its location and amenities.
“Business has grown steadily over the past five years, and the hotels have weathered the downturn and are rebounding strongly,” Lowe said in a statement.
Howard Hughes Corp., which is based in The Woodlands, previously announced plans to target $600 million net proceeds through the sales of noncore assets. With this sale, the company has closed on $376 million.
“The sale of our hotel assets in The Woodlands further advances the disposition of noncore assets as outlined in our 2019 strategic initiative,” David O’Reilly, Howard Hughes Corp. chief executive, said in a statement. “We are pleased to have found a buyer who shares our commitment to providing visitors to The Woodlands with a best-in-class customer experience.”