$65 million deal

Shuttered downtown luxury hotel sells for $65 million to national powerhouse

Shuttered downtown luxe hotel sells for $65 million to national group

Hotel Alessandra exterior
The Hotel Alessandra has a new owner. Photo by Shannon O'Hara

Downtown's Hotel Alessandra has a new owner. Host Hotels & Resorts acquired the 20-story, 223-room hotel for $65 million, the company announced in its second quarter earnings report.

Originally opened in late 2017 under management by the Valencia Hotel Group, the Alessandra closed unexpectedly in January. At the time, real estate development firm Midway cited "the unprecedented challenges faced by the hospitality industry in the COVID-19 era" as the reason for the closure. The company said it "[looked] forward to serving our guests in the near future.”

Instead, those guests will be served by a new operator. Host Hotels owns 84 properties with a total of 47,600 rooms, including four in Houston: the St. Regis and the J.W. Marriott in the Galleria area; the the Houston Marriott Medical Center/Museum District; and the Houston Airport Marriott at George Bush Intercontinental Airport. 

“Subsequent to quarter end, we completed two additional opportunistic acquisitions — Baker’s Cay Resort in Key Largo and a luxury hotel in downtown Houston," Host Hotels president and CEO James F. Risoleo said in a statement. "We believe these assets will provide meaningful opportunities for EBITDA growth and continue to improve the quality of our portfolio."

In its short history, the Alessandra earned a number of awards, including recognition from Condé Nast, TripAdvisor, and U.S. News & World Report. The hotel's dramatic entryway and second-floor lobby contributed to it being named a finalist in the SBID International Design Awards.

Its amenities included a bar, the Mediterranean-inspired restaurant Lucienne, and a luxurious spa. Expect more information about Host's plans for the property, including a new name, in the coming weeks.