History

The history of HEI is a dynamic one. What began as a small hotel investment company more than 35 years ago has grown into a highly respected industry leader. HEI has evolved from its early days as an owner/operator into the leading hotel private equity fund sponsor before emerging as one of the largest and most respected third-party management companies with deep relationships among the industry’s most recognized institutional capital partners. Throughout it all, HEI has grown its base of brand and capital partners, endured multiple economic cycles, and further strengthened its well-established track record of investor returns and operational success.

1985
Founded by brothers Gary and Steve Mendell and Stephen Rushmore of HVS Global Hospitality Services, HEI began as just an investor in hotels, but, after quickly realizing the strong correlation between day-to-day decision-making and underlying real estate value, HEI pivoted to create a management arm to become a fully-integrated owner/operator.
1985
1997
With a portfolio of 28 hotels and the management arm, HEI is sold to a public company that becomes Starwood Hotels & Resorts. Gary Mendell is named President of Starwood and oversees the acquisition of Westin Hotels & Resorts and ITT Sheraton before returning to restart HEI.
1997
2002
HEI is re-formed. The company’s prior successful track record immediately attracts leading institutional capital partners, including Olympus Real Estate Partners, Rockwood Capital, Greenfield Partners and Prudential to fund HEI-identified investment opportunities.
2002
2004-2006
HEI adds Clark Hanrattie from Olympus Real Estate Partners, Anthony Rutledge from Skadden Arps and Ted Darnall from Starwood Hotels & Resorts. HEI raises Fund I, a $274M private equity fund backed by the world's most recognized university endowments. Fund I was invested in 14 hotel assets, including The Algonquin in New York City and a historic tax credit redevelopment creating the Westin Minneapolis, among others.
2004-2006
2006-2008
HEI raises Fund II, a $425M equity fund oversubscribed. Among 16 investments, the Fund is used to acquire the Park Hyatt in San Francisco, the historic Equinox Resort & Spa in Vermont, and to design and develop the W Hollywood Hotel & Residences in Los Angeles.
2006-2008
2008-2012
HEI raises Fund III, again oversubscribed with $515M of equity commitments. The fund goes on to invest in 14 hotel assets, including the conversion of The Liberty Hotel in Boston to a Luxury Collection and The Stoneleigh Hotel in Uptown Dallas to Le Méridien. With all but one investment now realized, the Fund has generated a 42% gross IRR for our investors.
2008-2012
2013
HEI begins expanding its third-party management relationships, raising capital on a deal-by-deal basis through a growing list of institutional capital partners. In addition to being an early adopter of soft-branded franchises, HEI refines its business model, creating a suite of technology applications and operating tools for non-branded hotels designed specifically for driving revenues, streamlining operations and maximizing the value of independent hotels.
2013
Present
Today, HEI is an established expert on Luxury, Upper-Upscale, and Upscale hotels in Urban, Super-Suburban, and destination Resort locations across branded, soft-branded and independent lifestyle categories. Our ever-growing portfolio. currently includes 80+ assets, representing more than 25,000+ keys across approximately 30 different capital partners. HEI continues to be one of the most active investors in, and managers of, institutional-quality hotel assets across the US.
The Liberty Hotel Boston
Present

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