Partners Group and Trinity Fund Advisors bought the 431-key Four Seasons Resort Dallas at Las Colinas, which features 90,000 square feet of meeting and event space, in another sign that investors see travel rebounding in the region.
The buyers plan “a multi-million dollar’’ renovation of the property, which is in Irving, Texas, and features a golf course plus a 14,000-square foot spa. Financial terms of the deal weren’t disclosed. The hotel was last sold in October 2018 for $235 million, or $545,244 per key, and the current owner is Extell Development, according to CoStar.
Hotels were among the hardest-hit by the pandemic as lockdowns and business trip cancellations brought slashed reservations. Acquisitions and new construction came to a virtual halt. Now deals like the Four Seasons as well as new construction, such as the $125 million JW Marriott being built in downtown Dallas show the lodging rebound has arrived.
Leisure travel has recovered first, and strongest, and it’s driving investment in development and acquisitions. The Four Seasons buyers also anticipate rebounding business travel as the Dallas area becomes an increasingly important business hub, driving demand for the resort’s event space.
“This property is a premier resort destination centrally located within one of the fastest-growing markets in the country, which has seen more than 10 consecutive years of record demand and RevPAR growth,” Trinity CEO Sean Hehir said in a statement. “We look forward to working with Trinity on our value creation plan for the property,” he said.
Dallas led the country in hotel construction in the pipeline in the first quarter, according to Lodging Econometrics. It had 165 projects with 19,730 total rooms.
Dallas also came in No. 1 with the most projects in early planning and the most hotel developments expected to begin construction in the next year, the firm reported. The New York market had the most projects already under construction in the first quarter.
“We have conviction in the Dallas Metroplex area due to its strong local economy, solid employment rates, and population growth,” Jason Longo, senior investment leader at Partners Group, said in a statement.
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The capital improvement program planned by Partners Group and Trinity calls for the renovation of all guest rooms, villas and meeting space, new concepts for the hotel’s food and beverage outlets, and activating the outdoor pool area.
Guests can access the adjacent Four Seasons Golf and Sports Club, which includes 12 tennis courts, an indoor swimming pool, a 6,000-square-foot fitness center, and the TPC Las Colinas golf course.
The Dallas metroplex has gradually become one of fastest-growing markets in the United States, experiencing significant growth even throughout the COVID-19 pandemic.
The City of Irving is becoming a thriving center for business and entertainment in the region, offering attractive residential communities within a desirable suburban setting, and the 12,000-acre Las Colinas master-planned community particularly is characterized by prominent office towers, retail centers, and residential communities. It features nearly 41 million square feet of office space and is home to more than 2,000 companies and 400 corporate headquarters.