HEI Could Fetch $400 Million for 4 Hotels
Fund operator HEI Hotels is marketing four full-service hotels valued at about $400 million.
The 1,120-room portfolio is made up of two Philadelphia properties, one in Florida and one in California. HEI prefers to sell the portfolio intact, but will consider bids on individual hotels. The estimated value equates to $357,000/room. Hodges Ward Elliott has the listing.
The four properties are: a 293-room Embassy Suites in Irvine, Calif.; a 250-room Sheraton in Dania, Fla., near the Fort Lauderdale airport; the 289-room Westin Inn in Philadelphia; and the 288-room Embassy Suites Center City in Philadelphia. The average occupancy rates range from about 77% to 82%, according to market players.
HEI, based in Norwalk, Conn., acquired the properties in 2005 and 2006 via its $425 million HEI Hospitality Fund 2. They are among the fund's last remaining holdings. HEI spent $6 million to $10 million on improvements to each of the hotels, which are managed via its Merritt Hospitality subsidiary. Some of the properties were rebranded.