HEARTY APPETITES

Investment opportunities abound in the hospitality sector, and HEI Hotels & Resorts is in the midst of deploying its third equity fund, worth $515M, says SVP Russ Urban, who'll be speaking at Bisnow’s NY Hotel Investment Summit on July 27 at The Roosevelt.
HEI has invested half of its Fund III so far, and completed five acquisitions this YTD, including one JV interest, one hotel from a lender, and three from owners motivated to sell, he says. The types of opportunities vary: distressed properties, owners within maturing funds who can’t refinance or complete necessary renovations without paying out of pocket, and lenders who are not looking for long-term ownership. Russ predicts that even more assets will come to the market over the next five years as further distress manifests itself with CMBS maturities and shorter-term holders sell properties to meet investors’ demands. “We’re buying in the right market,” he says. “We project strong growth.” To hear where investors are placing their money, join Russ, Denihan’s Ellen Brown, FelCor’s Erik Nylen, LW Hospitality Advisors’ Dan Lesser, Morgans Hotel Group’s Eric Bass, CIM Group’s Justin Rimel, Allied Advisors’ Richard Rudd, Prudential Douglas Elliman’s Faith Hope Consolo, PMZ Realty Capital’s Michael Sonnabend, Starwood Hotels’ Mark Purcell, Greenberg Traurig’s Stephen Rabinowitz, Arent Fox’s Richard Brand, and Katten Muchin Rosenman’s Sheri Chromow. Plenty of schmooze time, too. Register today!

Hersha Hospitality Trust, for one, has entered into a purchase and sale agreement to acquire the 175-room Hyatt Union Square for $104M, expected to close after the seller completes the hotel’s construction (Hersha is not assuming any construction risks, including scheduling and cost overruns). The four-star hotel, which is scheduled to open next year, will have a historic facade, 23-foot lobby ceilings, an upscale restaurant, a destination lobby bar (may we suggest the name Hersha-y Bar?), rooftop lounge, private terraces, a fitness facility, and pool. In April, the REIT announced that it purchased the 112-room Holiday Inn Express Wall Street and the 81-room Hampton Inn Financial District for $69M.

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