Hilton says that it has sold the 395-room Hilton DFW Lakes Hotel & Executive Conference Center in Dallas, Texas, to an affiliate of Somera Capital Management for approximately $65.5 million.
It is estimated that the new ownership will spend $6 million in additional capital to upgrade the property.
The hotel will continue to operate as a Hilton branded property under the terms of a 20-year franchise agreement with Delaware-based Perini-Grapevine, Inc.
“We are pleased with the terms of this deal, which allows us to sell the hotel at an attractive price, while having it remain part of the Hilton brand through a franchise agreement,” said Dave Sherf, senior vice president - Asset Management, Hilton Hotels Corporation.
“By renovating this hotel we will create a superior product in the vibrant and expanding DFW/Grapevine market,” said David Brown, president and CEO of Somera Capital Management. “We are excited to work with our partners, Quorum Hotels and Resorts, the principals of which were involved in developing and operating this asset over 20 years ago.”