The Howard Hughes Corporation [NYSE: HHC] has disclosed that it has decided to divest three of its hotels in the Woodlands. Three hotels of the firm will be acquired by a joint venture between Lowe and an institutional investor. The three hotels which the firm is going to divest include “The Woodlands Resort, The Westin at The Woodlands, and Embassy Suites by Hilton, The Woodlands at Hughes Landing”.
Three assets of Hughes were acquired for $252 million. Lowe’s hospitality management subsidiary, CoralTree Hospitality will continue to manage the hotels. Lowe will immediately commence a $25 million capital investment program at the three hotels, totaling 909 rooms. It has been disclosed that Howard Hughes has successfully completed nearly $376 million of the targeted $600 million net profit in the sale of non-core assets defined two years ago with this sale.
Furthermore, The Howard Hughes Corporation revealed that Lowe has earned recognition for its leading quality service within the hospitality industry. Hughes is excited to have found a buyer who shares its commitment to offering visitors to The Woodlands a best-in-class customer experience.
In addition, The Woodlands Resort is the original hotel in The Woodlands master-planned community and was established in 1974. The 205-room Embassy Suites by Hilton, The Woodlands at Hughes Landing, was established in 2015. It provides a business center, fitness facility, rooftop pool with views of Lake Woodlands, and 3,500 square feet of group and event space.
On the other hand, the 302-room Westin at The Woodlands, established in 2016. It is a AAA Four-Diamond property. The Lowe venture was headed by Greenberg Traurig while K&L Gates offered legal counsel to The Howard Hughes Corporation. CBRE and JLL embodied the seller in the transaction.