HEI Hospitality LLC, a closely held lodging investment and management company, is in talks to buy the upscale Hotel Palomar Arlington for about $45 million, according to a person with knowledge of the deal.
An agreement for the $292,200-a-room purchase is likely to be completed soon, said the person, who asked not to be named because the discussions are private.
The hotel, located near Washington, is owned by JBG Cos., a Chevy Chase, Maryland-based developer. The property is run by Kimpton Hotel & Restaurant Group LLC, the San Francisco-based operator of 52 boutique hotels and 56 restaurants in the U.S. HEI owns 42 high-end properties with such brands the Le Meridien, Crowne Plaza and Westin.
“Over the long term, Washington is a good market with not much new supply coming in,” said Patrick Scholes, a New York- based analyst at FBR Capital Markets.
Courtesy of Bloomberg Businessweek
