Moving in on Distressed Hotel Market, $1.5B Fund Makes First Play
The 353-room Hanover Marriott in Whippany, N.J., has just become the
first purchase of HEI Hotels & Resorts' third investment fund, HEI
Hospitality Fund III L.P. The Norwalk, Conn.-based investment firm
acquired the property from Bethesda, Md.-headquartered Host Hotels
& Resorts for $27 million. Raised in 2008 with $515 million in
commitments, the discretionary fund has approximately $1.5 billion in
leveraged buying power and allows HEI to capitalize on the growing pool
of low-priced, distressed assets hitting the market.