About Us: News

HEI Hotels & Resorts Acquires Hanover Marriott in New Jersey,Marking First Acquisition of HEI Hospitality Fund III, L.P.

Hotel to Undergo $20 Million Renovation

WHIPPANY,N.J., August 20, 2009–HEI Hotels & Resorts(HEI), the nation’s fastest growing private owner/operator of hotel real estate,today announced that it had acquired the 353-room Hanover Marriott in Whippany, N.J.,from Host Hotels & Resorts, Inc. for $27 million.  The hotel will undergo a $20 millionrenovation to upgrade all public and private spaces, including the introductionof Marriott’s Great Room concept. 

“This marks thefirst acquisition of our third investment fund, the $515-million HEIHospitality Fund III, L.P., which was raised in early 2008,” said Steve MendellEVP—acquisitions.  “We will continue toseek top-branded hotels in markets with barriers to new entry that we canacquire at below-replacement cost and which will benefit from improvedoperations.  The Hanover Marriott fits perfectlyinto our portfolio ‘sweet spot’, and is representative of the type of assets weare targeting for Fund III.”

Located at 1401Route 10 East in Morris County, the hotel is less than 30 minutes from New York City and is surroundedby more than 12 million square feet of office space. The hotel is convenientlylocated proximate to the corporate headquarters of a number of Fortune 500companies, including Avis, Wyndham, AT&T and Verizon.  Guestrooms include Marriott’s signature “ReviveCollection” bedding with luxurious down duvets, mattress toppers and extrapillows; well-lit work desk with high-speed Internet access; and bathrooms withgranite vanity tops.  Additionally, thehotel provides 22 meeting rooms aggregating 18,850 square feet of meetingspace, including the largest Grand Ballroom in Morris County,accommodating up to 1,000 guests.  Thehotel also offers Allie’s, a three-meal restaurant; full-service businesscenter; indoor/outdoor pool; on-site fitness center; and outdoor picnic/BBQarea.  In addition, the Auld Shebeen pub,which was flown in brick-by-brick from Ireland and re-constructed in thehotel by local artisans, serves authentic Irish cuisine.

“We believe this demonstrates the loosening of the hotelacquisition market,” added Roger Clark, HEI’s SVP – acquisitions anddevelopment.  “With approximately $500million of equity in our fully discretionary fund, we intend to be in thevanguard of this wave, surfacing deals that make sense for our investmentplans.  We have a number of hotels in ourpipeline, and expect to acquire between $1.0 billion and $1.5 billion in hotelsand resorts in the coming years.”

The renovation, which equates to an investment of nearly$57,000 per room, will focus on all aspects of the hotel, including the lobby,guestrooms and meeting space.  Theentrance area will be transformed into Marriott’s new “Great Room”concept.  The new concept is designedspecifically for the 24/7 work patterns of business travelers today, whosmoothly mix work, relaxation, socializing and play throughout the day.  The concept breaks the hotel public spaceinto separate areas for work and socializing in group and individual spaceswhile simultaneously linking them together with a cohesive feel.

About HEI Hotels & Resorts

HEI Hotels & Resorts, headquartered in Norwalk, Conn., is aleading hospitality investment firm that acquires, develops, owns and operatesfull-service, upper upscale and luxury hotels and resorts throughout the United Statesunder such well-known brand names as Marriott, Sheraton, Westin, Le Meridien, EmbassySuites, and Hilton.  For more informationabout HEI, visit the company’s website, www.heihotels.com.