HOUSTON-Locally based Moody National Cos. has ended its hold on the 197-room Marriott Houston Medical Center by selling it to Chatham Lodging Trust. The Palm Beach, FL-based REIT paid $34.7 million for the three-year-old property.
“This is a beautiful, high quality hotel in Houston’s thriving Medical Center area which is forecast to be one of the nation’s top lodging markets in 2013,” says Jeffrey H. Fisher, Chatham’s CEO in a press release. “This property matches up exactly with our strategy of acquiring premium–branded, upscale extended stay and select-service hotels in high demand markets that command high daily rates and revenue.” Fisher goes on to say that the property at 7702 Main St. is around the corner from another Chatham-owned asset, the Hampton Inn Medical Center. As such, “We know the market very well and see significant opportunities to maximize revenue and cost efficiencies,” he adds.
The hotel, developed by Moody National, opened in February 2010 and offers three meeting rooms comprising approximately 2,000 square feet. Additional amenities include a Zen garden and multiple seating options inside and outside the building that allow guests to stay productive and relaxed. A well-appointed lobby theatre area with contemporary media pods are among some of the options that offer a comfortable space to enjoy a meal from the Bistro Restaurant while watching personal 20-inch, flat-screen, high-definition televisions. The hotel will be managed by Island Hospitality Management, a hotel management company 90%-owned by Fisher.
According to Chatham’s chief investment officer Peter Willis, the transaction came about because of a previous relationship established with Moody National, from which other hotels had been acquired. ” We have an active pipeline aligned with our investment strategy, which allows us to be selective when making our final investment decisions,” he adds.