20 October 2021
Monarch Alternative Capital Expands Hospitality Portfolio through Purchase of Westin Minneapolis
Monarch Alternative Capital LP, a leading investment firm with approximately $9 billion of assets under management, today announced the purchase of The Westin Minneapolis in Minnesota in partnership with HEI Hotels & Resorts. Through its existing real estate presence and deep relationships in the Minneapolis market, Monarch was able to acquire a leading hotel at a significant discount to historical transactions in an off-market purchase due to disruption caused by the pandemic. The Westin Minneapolis acquisition, Monarch's twelfth hotel purchase in 2021, highlights the firm's continued ability to identify attractive properties that it believes are well-positioned to benefit from the return of both business and leisure travel.
The Westin Minneapolis is a 214 key, full-service business-oriented hotel in the heart of downtown Minneapolis. The hotel's location, at the center of the Minneapolis Skyway System and its close proximity to the city's largest group facilities including the Minneapolis Convention Center, U.S. Bank Stadium, Target Field, and Target Center, make the property an attractive destination for business and leisure travelers in the city's business district. To enhance the already high-quality business, leisure, and entertainment offerings, Monarch is committed to further improving the hotel through an upcoming property renovation. Furthermore, Monarch believes that the Westin brand, with significant customer loyalty in the business and leisure markets, will make the hotel one of the most sought-after hospitality properties in the city.
In addition to the property characteristics, Monarch continues to be drawn to the dynamic attributes of the Minneapolis market. With its young and highly educated workforce, Minneapolis is already a desirable business location and is home to more Fortune 500 companies per capita than any other large metro market in the United States. The Westin Minneapolis is already beginning to benefit from the return of business and leisure travel to the area.
Ian Glastein, Managing Principal and Co-Head of Real Estate at Monarch, said, "Our acquisition of the Westin Minneapolis is consistent with our focus on high quality properties in historically strong markets that have been dislocated by the COVID-19 pandemic. Our deep sourcing capabilities, together with our ability to provide speed and certainty of execution, were key to this transaction."
Monarch will operate the property in partnership with HEI Hotels & Resorts, a leading hotel investment and management company. HEI's experience managing hotels in Minneapolis and Westin properties across the United States further strengthens the growth prospects for the Westin Minneapolis.
About Monarch Alternative Capital LP
Monarch Alternative Capital LP is a global investment firm founded in 2002 with approximately $9 billion in assets under management. Monarch focuses primarily on opportunistic and distressed situations across corporate debt, real estate, special situations, and other market segments. Monarch draws on the skills and experience of its employees across its offices in New York and London. For more information, please visit www.monarchlp.com.
About HEI Hotels & Resorts
HEI Hotels & Resorts, headquartered in Norwalk, Conn., is a leading hospitality investment and management company that owns or operates over 80 luxury, upper-upscale and upscale independent and branded hotels and resorts throughout the United States. HEI's branding partners include Marriott, Hilton, Hyatt, IHG and Accor. The company is renowned for its commitment to its associates, revenue management, profit contribution and empirically based real estate value creation, driven by a full complement of proprietary software tools to set and exceed targets on a fully integrated basis. HEI works hand-in-hand with institutional capital partners on existing assets under management as well as sponsored acquisition opportunities. The company has ample equity capital and strategically co-invests with its partners on many transactions. To learn more about HEI, please visit www.heihotels.com