Acquisitions & Hotel Openings

Lennox Capital Partners Acquires The 255-Room Westin St. Louis From HEI Hotels & Resorts

ST. LOUIS, MO. August 30, 2017 – Lennox Capital Partners has acquired The Westin St. Louis from Norwalk, Connecticut-based HEI Hotels & Resorts. As part of the transaction, Lennox Capital Partners separately executed on a ground sale and lease back.

“We are thrilled to execute on our growth strategy and own the best performing hotel in the market”, said Lennox Capital Principal Jeff Barone. “We expect to achieve out-sized risk-adjusted returns with this investment.”

The 255-room hotel, with 14,000 square feet of meeting space, was redeveloped from the historic Cupples Station in 2001 and is considered one of the premier adaptive-reuse projects in America. The historic nature of the hotel lends itself to spacious guest rooms, (average size is 600 square feet with 13 feet ceiling height) and expansive, inviting common areas.

Comprised of four, interconnected buildings characterized by ornate brickwork with arches and large loft-style room windows complemented by contemporary architecture, the property’s oldest architectural detail dates to 1895. A major, $8 million renovation is planned for mid-2019 and will include guest rooms, meeting rooms, public areas and the restaurant.

“With its proximity to Busch Stadium and the highly anticipated Phase II of Ballpark Village, we see this as a tremendous opportunity,” said Patrick Lowery. “It is particularly exciting for us to be able to reinvest in our hometown.”

Under the new ownership, HEI Hotels & Resorts will continue to manage the property.

About Lennox Capital Partners

The principals of Lennox Capital Partners have nearly 5 decades of collective experience, successfully implementing real estate investment and management strategies globally. The Westin marks the firm’s third project in St. Louis, each considered to have the premier location and highest quality product in its respective submarket. Lennox Capital Partners targets best in market lodging opportunities ranging from Select Service to Luxury properties, in locations with strong diverse demand drivers. The firm’s current geographic focus is North America, favoring value-add investment opportunities that leverage the principals’ previous experience. For more information, visit: http://www.lennoxcpllc.com. 314-518-7225

Coming Up In The December Online Hotel Business Review

Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotel’s operation that isn’t touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law – real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott International’s acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important – the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding it’s much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.