The Houstonian Hotel, Club & Spa

HOUSTON—HFF arranged an $85 million refinancing for The Houstonian Hotel, Club & Spa here.

Working on behalf of The Redstone Companies, L.P., HFF secured the fixed-rate loan. Capital was provided by AXA Equitable Life Insurance Co. through its advisor, Quadrant Real Estate Advisors.

The Houstonian is situated on 18.3 wooded acres in the Galleria area. In addition to 289 guestrooms, the property includes a health club and day spa, as well as 26 meeting spaces. Renovated in 2003, hotel amenities include 24-hour room service, valet parking, bar, café and two full-service restaurants, access to the private Houstonian Club and preferred access to Redstone Golf Club.

The HFF team representing the borrower was led by Managing Director Matt Kafka and real estate analyst Corby Chaffin.

The Redstone Companies is a privately owned company located here with a focus on hospitality, real estate and private equity. Redstone Companies Hospitality brands include The Houstonian Hotel, Club & Spa; Trellis, The Spa; Houstonian Lite-Pennzoil; Shadow Hawk Golf Club; The Houstonian Golf & Country Club; Redstone Golf Club and BlackHorse Golf Club. Managed properties include Lakeway Resort and Spa, Houstonian Lite-Wells Fargo and Vanderbilt Legends Club.

Quadrant Real Estate Advisors LLC, is a SEC-registered investment advisor with approximately $6.2 billion of commercial and multifamily real estate investments under management on behalf of institutional investors.

January 12, 2009 - While national economic predictions for the hotel industry in 2009 have not been very uplifting, a recent poll by the Hotel & Lodging Association of Greater Houston shows that Houston area properties are going into the new year spiffed up and ready to compete.

Taking advantage of several good business years, hotels and lodging facilities invested more than $220 million in 2008 to upgrade and renovate their facilities. In 2009, visitors to Houston will see a substantial number of renovated and/or updated hotel rooms, lobbies, restaurants, ballrooms and even entire properties. This amount does not include money spent in the area for repairs due to Hurricane Ike or to build new properties, such as the Hilton Garden Inn along Houstons westside Energy Corridor as well as the Four Points By Sheraton Memorial City and the Candlewood Suite " Reliant Park.

The poll was taken during the last of December and asked Association members to provide details and the approximate cost of the investment for any major refurbishment that was begun or completed during 2008. The response showed that the industry, already one of the largest employers in the area, added a substantial amount of money into the local economy and that the investments were in all parts of the area.

Here are some of the poll responses:

Topping the list of investment is the Lake Conroe resort, La Torretta Del Lago Resort & Spa, the former Del Lago Resort which has been closed for several years. At a project investment of $135 million, the new property opened for business in November with 445 luxury suites plus a newly-designed golf course, six swimming pools and a private lake beach, tennis courts and more. Additional spaces, restaurants and services will be introduced this year.

Just completing work in December, the Hilton Houston North (formerly the Wyndham Greenspoint Hotel) is showing off $21 million of upgrading which includes its rooms, meeting spaces, restrooms, restaurant, bar, business center, lobby and front desk area. The hotels fitness center was tripled in size.

The St. Regis, Houston invested $15 million to strip all of its guest rooms and hallways to the sheet rock - closing off three floors at a time during the summer - and emerged in late September with all new wiring, lighting, wall coverings, room furnishings, carpets, wood flooring, electronics and computer services.

While the most talked about change at the Four Seasons Hotel downtown was the saltwater resort pool with bar, the hotel also renovated 64 luxury residences, adding fully furnished apartment for lease. The extensive upgrading cost about $12 million.

Among other properties responding to poll was the Houstonian Hotel, Club & Spa which completed $7.1 million in work renovating its 289 guest rooms, upgrading electronic and computer services as well as improvements in the corridors.

Downtown, the Doubletree Hotel Houston used $4 million to renovate its guest, banquet and meeting rooms throughout the hotel. Work on the project was completed in July.

The Hyatt Regency downtown has invested $35 million in upgrades and renovation work throughout the hotel of which $20 million was spent and completed in 2008. The lobby has already undergone major refacing, and the hotel has completed its new Shulas Steak House.

The South Shore Harbour Resort began a $2 million renovation project of rooms, ballroom, corridors and restaurant. Upon completion, guests will have new bathrooms with granite counter tops and tile floors, among other upgrades throughout the hotel.

A multi-million renovation at the Holiday Inn Southwest upgraded rooms and entertainment areas, including the pool and hot tubs, and added a 24-hour business center.

The timing of the renovation investments gives Houston a competitive edge in national market, especially as the economy worsened in late 2008 and many projects across the country were postponed or canceled. While there are no indications 2009 will have as much local activity, the poll shows at least $33 million of additional renovations at various hotels are on going for this year.

This poll is one of several the Hotel and Lodging Association conducts each year concerning activities and opinions among its members.

With nearly 300 members, the organization is made up of general managers and owners of hotels and motels, suppliers, service companies and consultants who sell and service the hospitality industry. This industry, which provides more than 89,000 jobs and $327 million in payroll, is one of the top contributors to the Houston economy.

Serving as the voice representing the hotel and lodging industry in the Houston area, HLAGH is active in governmental affairs, education, tourism and charitable efforts. The organization provides scholarships to the Conrad N. Hilton College of Hotel & Restaurant Management at the University of Houston and on-the-job training to high school students through its High Schools for Hospitality Program.

The organization also works closely with the Greater Houston Conventions and Visitors Bureau to promote Houston as a convention and tourism location. Travel spending in the greater Houston area last year generated more than $147 million in local taxes. Hotels and motels also infused more than $500 million in construction and renovation spending into the local economy.

For more information, call the HLAGH at 713-437-5250 or e-mail the association, director@houstonhotels.org.

HOUSTON (October 8, 2008) -- The Houstonian Hotel, Club & Spa has completed a significant renovation to its guest rooms and the corridors on each guest floor. The finished rooms have a warm, residential feel, and offer energy-efficient features and technological advancements that are useful to both business and leisure travelers.

Each room has been appointed with warm-toned fabrics and rich furnishings, lamps and artwork. New carpeting includes a beautifully-sculpted looped-pattern, and new drapery features rich, copper sheers with embroidered over-drapes. The beds have wooden frames with upholstered-patterned head boards, as well as comfy plush throws and custom-made sheets and shams. Some rooms include an oversized sofa with a queen-sized sofa bed, as well as an ottoman to use as a coffee table or for lounging and resting ones feet at the end of the day

A floating oval full-length mirror is included in each room. The painted walls feature a neutral warm color, with the addition of a paneled effect and accents.

In the effort to conserve energy and provide special conveniences, The Houstonian has installed an energy management system for each room to regulate the temperature for when a room is unoccupied, and bring it to the guests temperature preference for when it is. The sensor also enables the hotel to know when a door has been opened or closed to eliminate disturbances from service staff, such as housekeeping or engineering. A Do Not Disturb doorbell unit has been placed in all rooms to increase guest privacy. In addition, each room offers energy-efficient lighting, including three-way, dimmable and standard-compact florescent light bulbs.

All guest rooms include a new 42-inch, LCD high-definition Philips television, and each room contains the LodgeNet Launch Pad, a secure and sturdy multimedia connectivity panel that allows guests to connect to a wide variety of portable devices such as laptop computers, digital audio and video players, portable DVD players and more. Over the desk, two new 360-degree rotating outlets are available for those needing to plug in large adapters and multiple electrical products.

The Houstonian has upgraded its in-room wiring and wireless network to provide more reliable service, with the wired network more flexible for group usage. And, Verizon Wireless has installed a cellular booster system that provides a better signal across the campus for cellular voice and data.

In-room safes now are accessible in drawers, and open at the top, making it easier for guests to store and retrieve their valuables.

The corridors have new carpeting, wall coverings, sconces and artwork.

Renovations to the rooms follow other projects completed at the hotel last year, which included adding new rugs and upholstery to the main lobbys Great Room, and a redo to The Bar, which was changed to have a more relaxing, clubby-type feel. Its changes included new sofas, furniture, rich leather chairs, and a new LCD TV.

In 2005, the facility opened a $3 million aquatic recreation center, including a Resort-style pool with a 32-foot-long water slide, interactive waterfall features, a baby pool, a walk-in entry, a sunning shelf, geysers, and a large deep end to accommodate exercise classes. A new Sports pool includes a 25-yard-by-25-meter competition pool, complete with a deck-level waterline to eliminate waves, removable starting blocks, pace clocks and a digital clock with easy-to-read six-inch letters. Finally, the Garden pool features warmer water, a lap-swim lane and a quiet environment for reading, tanning and relaxing.

Future plans include new carpeting in the Grande Ballroom, new digital directional signage in the lobby, a new laundry facility for hotel and spa laundry needs, additional parking and expansion to The Club, which includes four new indoor and four new outdoor tennis courts and a new padel court.

The materials included in the project were carpeting from Masland and Couristan; upholstery items from Flexsteel, Lancaster Industries and Autrey Manufacturing; lighting from Palecek, Lite Source, Cal Lighting, Troy Lighting and Pacific Coast; fabrics from Swavelle/Mill Creek, Robert Allen, Fabricut, ArcCom, Cortina Leather and Reid Witlin; draperies fabricated by Southwest Dcor, and other furnishings from Aspen Home, Vanguard, Bassett, Rosenbaum Fine Art, 360 Electrical, Cooper Classics and custom case goods from Milieu Designs.

Work was overseen by the architectural design firm Kirksey

By MASON LERNER
For the Chronicle

Jim Mills took the tasty route to the top of the Houstonian Hotel, Club and Spa's corporate ladder.

He started as its executive chef in 1995. By 2002, he was the hotel's manager, and three years later, he became its general manager.

Mills talked with Chronicle correspondent Mason Lerner about the changes he has witnessed in the hotel industry over the years, the state of the industry and the challenge of living up to the Houstonian brand.

Q: How common is it for someone to go from the kitchen to the GM position in the hotel industry?

A: It is unusual today, but there was a time, reportedly, in the hotel business where the pathway to the head office led through the kitchen.

My own belief is if you can successfully manage a large commercial kitchen, one that in today's dollars does more than $12 million or $15 million in volume and deals with so many weird deadlines and customer sensibilities, you can probably manage just about anything.

In my case, though, I believe it was the relationships I created here at the Houstonian, the support that I had from the staff and probably the fact that as a chef, I wasn't solely focused on the craft " although I do love the craft.

Many chefs really concentrate on cooking to the exclusion of all else. I really quite enjoy running the business of being a chef for a large commercial kitchen.

Q: How has the industry changed since you got into it?

A: I know that it really becomes a clich these days, but I will tell you that 15 years ago, very few people inside a hotel had computers.

The other thing that has changed, in terms of facilities, is that people expect a higher level of luxury at all levels of our industry than they expected 30 years ago.

I think 30 years ago, if you were at the very top hotels, people had very, very high expectations. But there was a wide range of what you might expect for your lodging dollar.

I think that that range has narrowed significantly over the last 15 years.

Q: Have any of the changes taken you by surprise?

A: Green initiatives, green thought, green design and green technologies, even 10 years ago, weren't something that I would have thought much about.

There just wasn't the awareness. But today there is, and that is driven by need.

That affects a lot of things that we do. It affects the choices that guests make in the marketplace as well as choices that we make in terms of sourcing products or design.

Q: What specific initiatives have you spearheaded to go green?

A: Our program to encourage guests to reuse their guest room linens. This is a fairly common practice today, although we have been pursuing this for more than 10 years.

The second one is to recycle our trash. We have gone the full gamut of that. We separate and recycle a number of items. We work very carefully with our waste vendors to achieve results.

Some things going forward in the very near future for us: We will renovate our guest rooms over the course of this summer. Ten years ago, we probably would have focused most of our efforts on the aesthetics of the room. How does it look, how does it make you feel?

For this project, aesthetics is one of the important features of the room, but the functionality of the room is on equal footing with the aesthetics.

We started with talking about technology and energy management, heightened efficiency lighting and some green initiatives where we don't use anything manufactured with volatile organic compounds.

Q: How do you deal with the challenge of living up to a brand name that has become synonymous with luxury?

A: It's something that you learn to live with. It is a constant and insistent need to move forward and to improve. You have to keep in mind that all of your competitors are doing the same thing.

It's something that our team talks about quite often in formulating both our strategic and our tactical plans in terms of our services and the facility offerings that make up our brand.