X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

THE WOODLANDS, TX-More than four years after opening, the 341-room Woodlands Waterway Marriott Hotel and Convention Center is under contract for $137 million to Inland American Real Estate Trust Inc. The sellers are Crescent Real Estate Equities Co. of Fort Worth and Morgan Stanley Real Estate of New York City.

An Inland spokesman would confirm, but not comment on the pending purchase. In a recent SEC filing, the Chicago-based Inland reported it put up $5 million of earnest money to acquire the fee simple and leasehold interests in the 1601 Lake Robbins Dr. hotel. At the closing, Inland plans to pay about $63.5 million in cash and equivalents and obtain a loan for the balance.

Richard H. Rudd, EVP with CB Richard Ellis’ Houston office, says the Woodlands Waterway Marriott, with a 70,000-sf conference center and 22,000 sf of meeting space, is a success story for the Woodlands and a great investment for Inland. “The hotel does extremely well and has achieved some of the highest room rates in the city,” says Rudd, who is not involved in the transaction.

Rudd tells GlobeSt.com that the acquisition most likely is an effort on Inland’s part to boost its hotel holdings, pointing out that it hired two executives from CNL Hotels & Resorts Inc. in Orlando after its $2.4-billion sale to Dallas-based Ashford Hospitality Trust Inc. “Their job is to build up a multi-billion dollar hotel portfolio for Inland,” Rudd explains. “The two hired from CNL are sharp, and they’re finding the properties.”

Construction began on the Woodlands Waterway Marriott in 2002. It opened in mid-2003. According to the SEC filing, Inland plans to retain the Marriott flag and management. Marriott will collect a property management fee equal to 3% of the hotel’s gross revenue. In return, Marriott will guarantee certain operating profits for fiscal years 2007 through 2009. Rudd points out that, given the asset’s age and quality of ownership, it won’t need many upgrades.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.