Colorado Real Estate Journal - December 16, 2015
Silverwest Hotels LLC’s growing list of hotels now includes a premier property in its own backyard. Silverwest’s multimillion-dollar acquisition of the Inverness Hotel and Conference Center, on behalf of Silverwest Hotel Fund(s) I/IA, represents the Denver-based company’s first asset in the Denver metro area. “To have an anchor asset like the Inverness to add to our portfolio here, where we’re based, was really an important accomplishment for us,” said Edward Mace, who, along with Charles Peck, co-founded the hotel investment and management company in 2013. Silverwest Hotels will spend millions improving the Inverness, which it pursued in large part because of the quality of the asset and what’s going on all around it. “For us, it started with a very high degree of confidence in what was happening in Denver and the Front Range. The Inverness itself is an exceptional property, but what’s really going to drive it is the strength of the economy in Denver,” said Peck. “I think that’s even compounded in southeast Denver, where there is so much going on in terms of corporate business, retail business, Skyridge (Medical Center) and the medical industry that’s building here,” he added. “The opportunity to acquire the crown jewel right in the middle of that with an irreplaceable property was more than we could resist.” Located at 200 Inverness Drive West in Englewood, the Inverness Hotel and Conference Center is a 302-room property with 60,000 square feet of conference space and an 18-hole golf club available to hotel guests. Destination Hotels has managed and operated the hotel since 1995 and will continue to do so under the new ownership. Peck is a former president of Destination Hotels and is very familiar with the Inverness – another reason Silverwest pursued the asset. Renovations will begin in 2016 and will touch virtually every part of the hotel, said Peck. “Our initial focus and a lot of our attention will be directed to the rooms,” he said. “The rooms are at that point in the cycle where they need to be completely rethought and refurbished.” It’s not uncommon for guests to use iPads, computers and smart phones simultaneously, so enhancing the speed of connectivity also will be part of the upgrades, said Mace. A Lowe Enterprises affiliate sold the Inverness Hotel. The price wasn’t disclosed, and Silverwest Hotels said the recorded price isn’t a true reflection of what it paid for the property. The Inverness Hotel and Conference Center originally opened in 1989 as the Scanticon Denver Hotel. The property last year underwent a $1.3 million renovation to the lobby, entrance, event corridors, and food and beverage outlets. “We look forward to implementing a plan that will substantially enhance the hotel’s appeal and our guest’s experience,” said Peck, adding the transition will be seamless for guests. Complete renovation of the guest rooms is slated to begin in November 2016 and take three to four months to complete. The acquisition comes as Silverwest Hotels opens newly developed hotels in the Colorado mountains: an element by Westin in Basalt and a Hampton Inn & Suites, a Hilton product, in Silverthorne. The company also owns and operates the Waikoloa Beach Marriott Resort & Spa in Hawaii. Eastdil Secured represented the seller in the transaction.