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Sample Investment: Marriott Boca Raton
Acquisition of Urban and Major Suburban Hotels
HEI concentrates on acquiring full-service hotels in strong urban and major suburban markets. The Marriott Boca Raton fits squarely within this investment profile as it is a 255-room full-service, upper upscale hotel located in a strong and growing urban market offering high barriers to new supply, and was available unencumbered by management.
In 2004, we were contacted by a key industry intermediary who was in discussions with the owner who, for a variety of reasons, required a quick sale transaction. Having already targeted this submarket for investment, we immediately dispatched a team of five people to commence due diligence while simultaneously negotiating a purchase and sale agreement. Our control over discretionary equity funds and depth of acquisition team was successful in providing the seller with the transaction speed and price certainty he was seeking. As part of the transaction, we worked creatively with the seller and his tax counsel to timely document two alternate structures to provide flexibility to achieve the seller’s 1031 exchange objectives.
Following acquisition, we commenced design efforts to innovatively reposition the property including the addition of a signature restaurant. An $8.3 million renovation was completed, which transformed the public area and guest room product from a staid 1990s design to a modern and sophisticated quality.
 
W Hollywood Hotel and ResidencesEquinox Resort & Spa
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