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Dow Hotel Company Seeks to Invest North of $200MM in Hotels Going Forward

By Jon Peterson

Seattle-based The Dow Hotel Company has plans to invest at least $200 million in the purchase of hotels over the next 12 months on a nationwide basis. Seattle figures to be one of its targeted markets.

“We think there are going to be some very strong hotel opportunities in the marketplace so we will be increasing our efforts in the purchase of properties. It’s our opinion that the recent decline in the stock market and the financial issues in China will mean more opportunities for us to buy properties,” says Murray Dow II, founder and president of Dow Hotel Company.

One move the company is making to increase its hotel acquisitions is by creating a new position in the company. It has hired Greg Denton to be a senior vice president of hotel investments. “This is a new position for our firm, and we are hopeful that he will be able to find and close on deals for us,” said Dow. Denton has acquired, developed and asset managed more than $6 billion in hotel real estate during his career. Some of the companies that he has worked for include The Related Group of Florida, Gencom Group, CNL Hospitality and White Lodging Services.

The hotel market in many areas around the country has been performing at a high level. This has included markets like Seattle and San Francisco. “Many of the markets are doing very well. One of the reasons for this is in general a lack of new supply of rooms, which allows the existing properties to have very high occupancy levels and increased revenue,” said Dow II.

The company does already own some assets in the Seattle marketplace, according to its Web site. One of these is the 353-room Hilton Bellevue in Bellevue. Dow would like to find more assets to buy in the Seattle area. Most of the properties that the company buys have some kind of a value-add component.

Dow buys properties using institutional capital sources. These relationships have included the likes of Prudential Real Estate Investors and The Carlyle Group. It prefers properties that are in need of a renovation, repositioning or new and improved management. The company typically buys full-service hotels and resorts in primary, secondary and selected tertiary markets around the country.