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Naval Academy grad Fred W. Malek’s hospitality investment firm buys Westin Annapolis
Former Naval Academy midshipman Fred W. Malek’s hospitality investment firm, District Hospitality Partners, made waves in the industry with its recent purchase of the Westin Annapolis hotel.
Records show that the $51 million purchase was finalized on July 19, marking another significant business move for Malek, who graduated from the academy in 1988, the Baltimore Sun reported.
The Westin Annapolis, located at 100 Westgate Circle, is a prominent 225-key hotel that was previously owned by Texas-based Crescent Real Estate, which bought the property in 2018 for $41 million.
The hotel has been a hotbed of activity, boasting a bustling market with around 2 million annual visitors, according to Malek.
This isn’t Malek’s first venture in Annapolis; he previously owned the Annapolis Waterfront Hotel at 80 Compromise St. before its sale in 2018. His firm, District Hospitality Partners, has a diverse portfolio of properties across the United States, Mexico, and the Caribbean.
The Westin Annapolis, constructed in 2007 as part of the Park Place development project on West Street, underwent a $5 million renovation in 2013.
Another overhaul was executed by Crescent Real Estate in 2020, solidifying the hotel’s status as a premier establishment. With its ample meeting and event spaces, fitness center, and popular Azure Restaurant and Lounge, the Westin Annapolis boasts one of the city’s largest ballrooms at over 6,300 square feet.
Looking ahead, Malek’s firm plans to continue investing in the hotel’s improvements, including renovations to its restaurant and bar within the next year. HEI Hotels & Resorts, a prominent hotel management firm, will retain management responsibilities for the property.
Malek’s journey has been as impressive as his recent business acquisitions. A former rugby player and holder of an economics degree from the Naval Academy, he was commissioned in 1988 and served on the USS Juneau during Operation Desert Storm. His career later transitioned to the Navy Special Warfare officer in the Navy Special Boat Units.
Malek’s success in the hospitality industry is paralleled by his family’s legacy. His father, Fred V.
Malek, was a significant figure in the world of hotels, having been the CEO of Marriott Hotels and a part owner of the Texas Rangers. He also played an advisory role for multiple presidents and was a notable Republican fundraiser until his passing in 2019.
By Ted Glanzer (the Real Deal) Aug 20, 2023, 12:00 PM
District Hospitality Partners, led by Fred W. Malek, a 1988 graduate of the academy, purchased the 225-room hotel at 100 Westgate Circle on July 19
A hospitality investment firm led by a former Naval Academy midshipman purchased the Westin Annapolis hotel last month for $51 million, property records show.
District Hospitality Partners, led by Fred W. Malek, a 1988 graduate of the academy, purchased the 225-room hotel at 100 Westgate Circle on July 19. The property was previously owned by the Texas-based Crescent Real Estate, which acquired it in 2018 for $41 million.
“I believe it’s one of the strongest hotel markets in the country,” Malek said Tuesday in an interview. “It’s a very well-run city in general. The market is bustling, with 2 million visitors a year.”
The purchase is not the first business foray in the capital city for Malek, who is the CEO of the Bethesda-based firm. He owned the Annapolis Waterfront Hotel at 80 Compromise St. before it was sold in 2018. District Hospitality Partners’ portfolio includes properties across the U.S., Mexico and the Caribbean.
The 157,736-square-foot Westin was built in 2007 as part of the Park Place development project on West Street. The 6-story building underwent a $5 million renovation in 2013. Crescent Real Estate completed another overhaul in 2020. The building has several meeting and event spaces, a fitness center and the popular Azure Restaurant and Lounge. It boasts one of the largest ballrooms in Annapolis at more than 6,300 square feet.
“We’re lucky that we have the most meeting space in town, by a lot,” Malek said. “We’re the go-to choice for midsize meetings.”
The Westin was one of several Westin-branded properties owned by Starwood Hotels following its merger with Marriott International in 2016. After the Westin opened in 2007, no new hotels opened within city limits for 15 years. In May 2022, the Annapolis Planning Commission approved a 134-room limited service Marriott hotel just north of the Westin on Taylor Avenue. That hotel is currently under construction.
“There’s not a ton of hotels in the market,” Malek said, “and it’s very hard to do new construction because there’s no space, and it’s a pretty densely packed downtown area. You’ve just got a lot of different social and environmental considerations with any development, and that’s as important here as it is in any other market.”
District Hospitality Partners is planning more upgrades to the hotel, including renovations to the restaurant and bar within the next 12 months, Malek said. Hotel management firm HEI Hotels & Resorts will continue to manage the property.
Malek’s firm also manages the Malek Family Office, an investment group founded by his late father, Fred V. Malek. The elder Malek was a former CEO of Marriott Hotels and part owner of the Texas Rangers. He advised multiple presidents and was a major Republican fundraiser until his death in 2019.
The younger Malek played rugby and earned a degree in economics at the academy before being commissioned in May 1988. He served on the USS Juneau for three years during which the ship participated in Operation Desert Storm. After that, he served as a Navy Special Warfare officer in the Navy Special Boat Units.
In 1992, Malek earned the rank of lieutenant and was transferred to Naval reserves the following year.
In 2007, the academy named the practice field Malek Rugby Pitch at the Brigade Sports Complex after the former midshipman.
By Brooks DuBose | [email protected] UPDATED: August 15, 2023
The 315-room Hilton Washington DC/Rockville Hotel & Executive Meeting Center is located at 1750 Rockville Pike.
District Hospitality Partners
The Hilton Washington DC/Rockville Hotel & Executive Meeting Center in Rockville has a new owner — and it’s a family with long ties to the local business community.
District Hospitality Partners, led by Fred W. Malek, bought the 315-room hotel at 1750 Rockville Pike near the Twinbrook Metro station in Montgomery County. The price was $35.75 million, or roughly $114,000 a room.
The hotel, the largest in Rockville and fifth-largest in Montgomery, was sold by HIG Capital and Driftwood Hospitality, the Florida company that managed the hotel. They bought the hotel in 2015 from affiliates of The JBG Cos. for $41.5 million.
HIG and Driftwood renovated the common areas of the hotel, built in 1982, in 2017, adding 10,000 square feet of meeting space, which now totals 36,934 square feet. It is home to Olive’s American Bistro.
Bethesda-based District Hospitality represents the hotel investments of the larger Malek Family Office, which was founded by Frederic V. Malek, a conservative fundraiser, presidential adviser and onetime CEO of Marriott Hotels. Malek, who also founded Thayer Lodging Group and Thayer Capital Partners and vied to buy what became the Washington Nationals, died in 2019.
His son, Fred W. Malek, is CEO of District Hospitality Partners, which buys below replacement costs and repositions its assets in the first 18 months. In a statement, Malek said the company plans to update the guest rooms, bathrooms and corridors.
The privately held real estate investment trust owns hotels across the U.S., Mexico and the Caribbean, including the Westin Annapolis, which it bought last year for $51 million.
JLL Hotels & Hospitality handled the sale and secured the financing.
By Douglas Fruehling – Editor-in-Chief, Washington Business Journal Oct 9, 2024
By Jena Tesse Fox Sep 24, 2024 9:23am
The Hilton Washington, D.C./Rockville Hotel and Executive Meeting Center has 315 guestrooms. (District Hospitality Partners)
District Hospitality Partners, a privately held hospitality investment group that owns properties nationwide, has acquired the Hilton Washington, D.C./Rockville Hotel and Executive Meeting Center.
“The Hilton Washington, D.C./Rockville is a key addition to our portfolio as we continue to accelerate our acquisition pace,” Fred Malek, CEO, District Hospitality Partners, said in a statement. “The property is located in a growing market with high barriers to entry and benefits from the balanced strength of its group and transient customers. With the property’s strong and balanced cash flows, the primary Hilton group option in the market, and the low basis and high capitalization rate, this acquisition represents our continued commitment to growing in top-tier markets with strong economic fundamentals and high-demand drivers. We plan to update the property by renovating the guest rooms, bathrooms, and corridors. These improvements are in addition to the previous owner’s recently completed renovation of the meeting space and common areas, including the lobby and restaurant.”
The 315-room property has nearly 40,000 square feet of event space across 26 rooms—including one of the area’s largest ballrooms at 10,000 square feet—and on-site catering. Additional amenities include a fitness center, business center, restaurant, bar and café.
The property backs up to the Twinbrook Metro station, providing direct access to downtown Washington, D.C.; Capital One Arena; Union Station D.C.; and the D.C. airports. The hotel also is close to U.S. and State Government Institutions, including the National Institutes of Health, U.S. Department of Energy-Maryland, National Institute of Standards and Technology, the U.S. Food and Drug Administration; pharmaceutical and health companies, including AstraZeneca, Kaiser Permanente, Emergent BioSolutions, and Human Genome Sciences, Inc.; and defense-related companies, including Lockheed Martin, Westat, Inc., and Hughes Network Systems, LLC. Directly adjacent to the hotel is 450,000 square feet of retail space and nearly 1,000 residential units currently being built or in planning stages.
By Jena Tesse Fox Sep 24, 2024 9:23am