Lowe Enterprises Investors, Los Angeles, has acquired the Hotel Derek, a 314-room independent boutique hotel in the Galleria area of Houston, on behalf of a national hotel investment venture LEI formed last year with The Guardian Life Insurance Company of America and a subsidiary of Allstate Insurance Co.
LEI affiliate Destination Hotels & Resorts, Englewood, Colorado, will take over management of the property. The purchase price for the property has not been disclosed.
The hotel offers an outdoor pool, 24/7 fitness center, 24-hour business center and 10,000 sq ft (929 sq m) of event and meeting space and F&B outlet Valentino Vinbar Houston. LEI also plans to implement a capital improvement program of at least US$4.5 million to upgrade guestrooms, guestroom corridors and meeting space.
“This is a rare boutique property in a market that is dominated by branded hotels. Its convenient location and modern style coupled with its meeting space options make the Hotel Derek an ideal choice for groups as well as business and leisure travelers,” said Russell Munn, senior vice president of LEI.