Monarch Alternative Capital Acquires The Westin Minneapolis
Main Photo: The Westin Minneapolis
Date: October 2021
Name: The Westin Minneapolis
Location: Minneapolis, Minnesota, USA
Number of Keys: 214
Seller: Watermark Lodging Trust, who acquired the hotel for $66.4m in 2015. The property was originally built as the Farmers & Mechanics Bank building in 1942 where the adjoining office building was reconfigured to house the hotel’s guestrooms and meeting space in 2007.
Buyer: Monarch Alternative Capital LP in partnership with HEI Hotels & Resorts
Monarch Alternative Capital LP, a leading investment firm with approximately $9 billion of assets under management, today announced the purchase of the Westin Minneapolis in Minnesota in partnership with HEI Hotels & Resorts. The Westin Minneapolis acquisition is Monarch’s twelfth hotel purchase in 2021 and highlights the firm’s continued ability to identify attractive properties that it believes are well-positioned to benefit from the return of both business and leisure travel.
A statement issued by Monarch characterised the deal as a “significant discount” and an “off-market purchase due to disruption caused by the pandemic.” The hotel was last sold for $66.4 million in 2015.
HEI Hotels & Resorts, headquartered in Norwalk, Conn., is a leading hospitality investment and management company that owns or operates over 80 luxury, upper-upscale and upscale independent and branded hotels and resorts throughout the United States. HEI’s branding partners include Marriott, Hilton, Hyatt, IHG and Accor.
The Westin Minneapolis is a 214 key, full-service business-oriented hotel in the heart of downtown Minneapolis. The hotel is located in the city’s business district at the center of the Minneapolis Skyway System and its close proximity to the city’s largest group facilities including the Minneapolis Convention Center, U.S. Bank Stadium, Target Field, and Target Center, appealing to business and leisure travelers .
Monarch is committed to further improving the hotel through an upcoming property renovation. Furthermore, Monarch believes that the Westin brand, with significant customer loyalty in the business and leisure markets, will make the hotel one of the most sought-after hospitality properties in the city.
In addition to the property characteristics, Monarch continues to be drawn to the dynamic attributes of the Minneapolis market. With its young and highly educated workforce, Minneapolis is already a desirable business location and is home to more Fortune 500 companies per capita than any other large metro market in the United States. The Westin Minneapolis is already beginning to benefit from the return of business and leisure travel to the area.
Ian Glastein, Managing Principal and Co-Head of Real Estate at Monarch, said, “Our acquisition of the Westin Minneapolis is consistent with our focus on high quality properties in historically strong markets that have been dislocated by the COVID-19 pandemic. Our deep sourcing capabilities, together with our ability to provide speed and certainty of execution, were key to this transaction.”
Monarch will operate the property in partnership with HEI Hotels & Resorts, a leading hotel investment and management company. HEI’s experience managing hotels in Minneapolis and Westin properties across the United States further strengthens the growth prospects for the Westin Minneapolis.
Watermark Capital Partners, LLC is a real estate investment management firm that has some 30 US hotels under it’s belt, including the Ritz-Carlton Key Biscaine – one of five Ritz-Carltons, Hyatt Centric French Quarter in New Orleans and other branded hotels. Besides lodging they are into resort residential; recreational including golf and club ownership programs; and mixed-use projects.
Price: Undisclosed
THPT Comment: Monarch’s acquisition of Westin Minneapolis is their 12th hotel purchase in 2021, so steaming ahead in this interesting period.
First Seen: Hotel Online
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