HEI Hotels & Resorts, a national hotel owner and operator, has bought a majority equity interest in the Hotel Minneapolis and will be converting it to Marriott's new Autograph Collection brand. The size of the investment, announced Tuesday, wasn't disclosed.
It's the second sale of a downtown hotel in just over a week. Last week the city's largest hotel, the Hilton Minneapolis, was sold for $155.5 million to DiamondRock Hospitality Co., a real estate investment trust in Bethesda, Md.
The 222-room Hotel Minneapolis, which opened in 2008 amid the downturn, was owned by Minneapolis-based Hempel Properties and has been behind on its taxes, records show. The hotel was affiliated with Hilton's Doubletree upscale brand.
Hempel has formed a joint venture with HEI to operate the property. HEI, based in Norwalk, Conn., will operate the hotel; Hempel will serve as asset manager and manage the offices and retail parts of the building. HEI also built the Westin Minneapolis, which opened in 2007.