PASADENA, CALIFORNIA HEI Hotels & Resorts has purchased the 350-key Westin Pasadena from MPG Office Trust Inc.
MPG reports the purchase price as US$92 million, or US$263,000 per key. This is the eighth acquisition by HEI’s Fund III and is the 40th hotel in the company’s overall portfolio.
“HEI’s ability to acquire three assets in the last 30 days speaks to our ability to find exceptional hotels and process complex transactions expeditiously,” says Steve Mendell, president for acquisitions and development. “We are on track and plan to continue on this path of accelerated growth as long as the market continues to provide attractive risk-adjusted opportunities.”
CFO Anthony Rutledge says it was a complex transaction requiring an efficient closure. “Our success here really is an acknowledgement of the full depth and talent of our investment, operations and renovations teams, as well as our industry relationships,” Rutledge says. “New financing was provided at closing by one of our longstanding preferred lenders, Wells Fargo, which again demonstrated its commitment to our platform and its confidence in our ability to close quickly on a complex transaction.”
Located adjacent to Pasadena City Hall and the Civic Center area in the heart of downtown Pasadena, the hotel is proximate to local demand generators, as well as downtown Los Angeles.
“This is arguably the best asset in one of the strongest submarkets in California,” says Russ Urban, HEI’s senior vice president of acquisitions and development. “Pasadena benefits from a strong mix of corporate transient and leisure demand throughout the San Gabriel Valley. HEI is Starwood’s largest franchisee, and this award-winning, upscale Westin is right in HEI’s sweet spot.”