Destination Hotels & Resorts to Manage the 314-room Hotel Derek in Houston, Texas, Recently Acquired by Lowe Enterprises Investors

Destination Hotels & Resorts, a leading hotel management company, announced today that it will manage Hotel Derek, a Houston, Texas hotel acquired by affiliated company Lowe Enterprises Investors (LEI) on behalf on an investment joint venture. This latest addition to Destination's portfolio of 40 hotels and resorts across the country is a result of the company's aggressive growth strategy in 2012 led by the newly appointed president and chief operating officer, Jamie Sabatier. Hotel Derek marks the 13th city hotel in Destination's urban collection. Within the past 18 months, Destination Hotels & Resorts has added urban properties in Chicago, Washington, DC, Seattle and Eugene to its portfolio.

The Hotel Derek offers 314 guest rooms including 10 suites and 16 business studio rooms. The hotel is located in the heart of Houston's fashionable Galleria district and adjacent to the upscale neighborhoods of River Oaks, Tanglewood, and trendy Uptown. Hotel Derek is surrounded by Houston's most prestigious shopping, entertainment and dining venues. This pet-friendly hotel offers an outdoor pool, 24/7 fitness center, 24-hour business center and complimentary high-speed Internet access. Hotel Derek provides a versatile venue for business or social gatherings with over 10,000 square-feet of event and meeting space that can accommodate groups of 10 to 500. Two executive boardrooms are available for executive retreats and intimate meetings or the Bravo Ballroom's 4,800 square-feet can hold up to 360 people. Guests and hotel visitors can dine or enjoy cocktails at the hotel's popular restaurant, Valentino Vinbar Houston.

"The Hotel Derek is an important addition to our increasing urban footprint throughout the country," said Jamie Sabatier, president and chief operating officer, Destination Hotels & Resorts. "We are excited to return to the Houston area, especially during this current period of strong growth in the market."

To further enhance the hotel, LEI will implement a capital improvement program of at least $4.5 million to upgrade meeting space, guest rooms and the guest room corridors.

Destination Hotels & Resorts has a history of successful hotel management in key Texas cities. Destination currently manages The Driskill Hotel in downtown Austin, Texas. Hotel Derek will benefit from the Destination customized marketing solutions and platform of sales and marketing resources, including national sales offices, Destination Earth, Destination Meeting Collection, the loyalty program, Destination Delivers and synergy with the company's current urban hotel collection.