Noble Investment Group has acquired the Richardson Hotel in Dallas, Texas from Lowe Enterprises. Financial terms of the transaction were not disclosed.
Noble will invest $6.4 million (€4.3 million) on improvements to convert the property to the Hyatt Regency brand, following a recent $8 million in capital invested in the property by Lowe. Renovations will include improvements to guest rooms, meeting and banquet space, and upgrades to public and restaurant areas.
“The acquisition of this first-class hotel is consistent with Noble's value-added investment platform,” Rodney Williams, managing principal and chief investment officer at Noble, said in a statement. “Our team is focused on increasing market share, revenue and profitability through the combination of re-branding the asset to the upper-upscale Hyatt Regency brand in conjunction with the planned physical enhancements to all guest rooms, meeting space and food and beverage outlets.”
The latest acquisition is Noble's tenth this year and the ninth acquisition in its Noble Hospitality Fund. In March, the firm closed its third private equity real estate vehicle, Noble Hospitality Fund, on more than $310 million to invest in the North American hotel sector. With leverage, the fund has the capacity to purchase more than $1 billion in hotels.
The 17-story, 342-room Richardson Hotel features 13,000 square feet of meeting and banquet space, including the 7,800-square-foot Texas Ballroom. The hotel is located within the 2.1-million-square-foot Greenway Office Park and Eastside, a mixed-use development under construction which includes retail and office space as well as 435 multifamily units.
Completion of Noble's latest project is slated for the first quarter of 2008.