Lodging Hospitality Management (LHM) has finalized its purchase of the 299-room Marriott St. Louis West, 660 Maryville Centre Drive, in Town and Country, MO, adding to the company’s portfolio of 18 hotels in the St. Louis metropolitan area.
LHM Chairman and CEO, Bob O’Loughlin, said the company will invest up to $10 million for upgrades at the hotel over the next two years. Those will include room renovations, a new roof and other elements to increase the experience of our guests, he said. The Harrick Group of Chicago will do design work for the renovations. LHM has used Harrick for a number of their projects inducing the fully renovated and historic St. Louis Union Station Hotel – A Curio Collection by Hilton.
“It’s a strategic purchase,” O’Loughlin said. “We own more than 5,000 hotel rooms in St. Louis and we are very bullish on the market. We try to be an important force in the lodging market in the Westport, Chesterfield and Downtown areas.”
Analyst Gary Andreas of H&H Consulting said the buy makes sense for LHM because, “that’s the type of hotel that they gravitate to: substantially sized hotels with good meeting space. It will complement the DoubleTree conference center they have in Chesterfield.
“It kind of gives them the upper hand for working with group business, and it gives them some brand diversity,” Andreas said.
The property had a special servicer since early 2017, when TPG defaulted on a $39.7 million loan. Financial records show TPG had struggled to boost key metrics over the decade it owned the property. By December 2017, occupancy fell five percentage points to 65 percent, and net cash flow declined from $3.8 million to $2.76 million over that 10-year period. (The property appeared on a financial watchlist in 2009.)
Vice President of Marketing, Todd Hotaling, suggests the purchase will “compliment what we can offer clients in the area for meetings and events while being a preferred partner to several large companies in the area for accommodations.”
One highlight was St. Louis Marriott West’s average daily rate (ADR) of $139 and RevPAR, or revenue per available room, of $90 — which were higher than the nationwide average last year of $126.39 for ADR and $83.57 for RevPAR, according to Cushman & Wakefield research. The purchase was finalized on Nov. 1, 2018.