Norwalk-based HEI Hotels & Resorts has acquired the Hanover Marriott in Whippany, N.J., from Host Hotels & Resorts Inc. for $27 million.
“This marks the first acquisition of our third investment fund, the $515 million HEI Hospitality Fund III L.P., which was raised in early 2008,” said Steve Mendell, executive vice president of acquisitions at HEI, a privately owned and operated hotel real estate company.
According to Mendell, the 353-room hotel will undergo a $20 million renovation to upgrade all public and private spaces, and will include the introduction of Marriott”™s “great room” concept.
“We will continue to seek top-branded hotels in markets with barriers to new entry that we can acquire at below-replacement cost and which will benefit from improved operations,” he said. “The Hanover Marriott fits perfectly into our portfolio ”˜sweet spot”™ and is representative of the type of assets we are targeting.”
Roger Clark, senior vice president of acquisitions and development at HEI, said the company expects to acquire between $1 billion and $1.5 billion in hotels and resorts in the coming years.