July 10, 2012 · 0 Comments
AUSTIN, Tex./ SEATTLE, Wash., July 10, 2012— (www.hospitalitybusinessnews.com) The Dow Hotel Company (DHC), a Seattle-headquartered hotel owner/investor, today announced that a joint venture between DHC and The Carlyle Group’s (NASDAQ: CG) Carlyle Realty Partners VI have acquired the Lakeway Resort and Spa near Austin, Texas. In addition, the new owners said they plan to invest more than $5 million to complete a renovation started by the prior ownership group. Operations of the resort will not be affected by the sale.
Situated on 12 acres with 1,000 feet of waterfront on Lake Travis in the Texas Hill Country, the AAA Four Diamond resort features 174 luxury guest rooms, suites and villas. The property is less than 30 miles from Austin and offers more than 24,000 square feet of flexible meeting and function space for both business and leisure groups. Key resort amenities include the San Saba Spa, a full range of water activities and world-class tennis with 24 outdoor courts and two indoor climate-controlled courts.
“With the hotel industry in the midst of a recovery, we believe the Lakeway Resort has excellent growth potential,” said Thad Paul, managing director of The Carlyle Group. “The strong job growth we are seeing in the Austin feeder markets around Texas, and the opportunity to reposition the property through capital improvements and new management makes this an attractive investment.”
“The hotel is in good condition having recently completed a $15 million renovation in the past few years,” said Murray L. Dow II, DHC founder and president. “We will upgrade the restaurant and introduce an expanded menu and complete some mechanical improvements this year. We also will undertake a complete makeover of all the guest rooms and bathrooms. Other plans for next year also call for upgrading the ballroom, creating a unique wedding experience space and refreshing the lobby and corridors. When completed, we will have a like-new resort in a stunning destination setting on Lake Travis.”
Hospitality Funding LLC, a Palm Beach, Fla.-headquartered boutique investment firm, focused on raising equity, mezzanine and debt financing for hospitality assets, advised the buyer group on the transaction.