297-Room Hilton Westchase Under Contract

Buyer Interstate Hotels & Resorts, which currently manages the property, signed an agreement with an affiliate of the Blackstone Group to acquire the hotel at 9999 Westheimer Rd. "Our strategy is to buy whole-ownership in urban and suburban hotels in strong markets," comments Interstate Hotels' chief investment officer Leslie Ng. "We believe this hotel is in one of the strongest submarkets of Houston."

The 1980s-built Hilton Houston Westchase was acquired in February 2006 through New York-based Blackstone's $2.6-billion buy-out of College Park, MD-based MeriStar Hospitality Corp. According to seller representative James Stockdale with Jones, Lang LaSalle Hotels, the Houston market provided a perfect time to sell. "There was quite a lot of interest in the hotel. The property itself had already gone through substantial guest room renovation, and the market fundamentals for Houston are positive," says vice president Stockdale, whose company helped broker the deal.

Ng says his company's renovations will include enhancements to lobby and food and beverage outlets, landscape work and mechanical improvements. Otherwise, "the hotel is in very good shape," he tells GlobeSt.com. He says the current management team will remain in place, as will the Hilton brand name.

The transaction will be Interstate Hotels & Resorts' fifth acquisition in the past 18 months. The company recently acquired the 308-room Hilton Hotel at 2401 East Lamar Boulevard in Arlington, also from Blackstone Group. Ng says his company is seeking out more investment opportunities nationwide, though nothing is under contract at this time.