ARLINGTON, VIRGINIA HEI Hotels & Resorts has purchased the fee-simple interest in the 417-key Sheraton National Hotel in Arlington, Virginia, for an undisclosed amount. The seller is National Hospitality Corp.
Norwalk, Connecticut-based HEI has taken over management of the hotel as part of the transaction and will continue to operate the hotel as a Sheraton. The property is the 39th hotel in the company’s portfolio and HEI’s seventh hotel under the Sheraton brand.
This is the second acquisition by HEI’s US$515-million HEI Hospitality Fund III LP in the past 30 days and its third acquisition this year. “The hotel acquisition market has clearly thawed in the past six months, and HEI is well positioned to be a major player in the current transaction climate,” says Steve Mendell, president of acquisitions and development.
The hotel is in Pentagon City, adjacent to the Pentagon and Arlington Memorial Cemetery and proximate to downtown Washington and Reagan/National Airport.
“The greater Washington, D.C., metro hospitality market continues to be one of the strongest in the nation,” says Russ Urban, HEI’s senior vice president of acquisitions and development. “With significant experience in the Northern Virginia market with our two existing hotels there, Sheraton Crystal City and Embassy Suites Tysons Corner, we see major potential in creating additional value in this property through the implementation of our industry-leading management programs.”