An Austin tie
Prominent Houston hotel taken over by national group: $4.5 million in updatesplanned
Hotel Derek, a 314-room independent boutique hotel in the Galleria area, has been sold to a group affiliated with the Hotel Driskill in Austin.
The 14-story Hotel Derek is located at 2525 West Loop South and Westheimer Road, one of the most prominent intersections in Houston.
Lowe Enterprises Investors (LEI) has acquired the Hotel Derek on behalf of a national hotel investment venture LEI formed last year with The Guardian Life Insurance Company of America and a subsidiary of Allstate Insurance Co. An LEI affiliate, Destination Hotels & Resorts, will take over the hotel management.
LEI plans to spend $4.5 million in the property to refresh the guest rooms and common areas and enhance the meeting space, including updating the technology. The company does not expect to change the hotel’s name or to affiliate with a big national chain.
LEI plans to spend $4.5 million in the property to refresh the guest rooms and common areas and enhance the meeting space, including updating the technology.
“This is a rare boutique property in a market that is dominated by branded hotels. Its convenient location and modern style coupled with its meeting space options make the Hotel Derek an ideal choice for groups as well as business and leisure travelers,” noted Russell Munn, senior vice president of LEI.
LEI also owns, on behalf of an investment client, the Hotel Driskill in Austin. Destination Hotels & Resorts is known for operating premier boutique hotel properties, including a number of hotels in Hawaii and the ski areas of Colorado.