The Lakeway Resort and Spa has been purchased by a joint venture between The Dow Hotel Co. and The Carlyle Group.
The new owners plan to invest more than $5 million in renovations to the resort, located at 101 Lakeway Drive, according to a July 10 news release. The resort, which had an outstanding loan of about $21 million that was taken out by Behringer Harvard Lakeway, was foreclosed upon on in early July, said John Zimmerman, National Credit Union Administration spokesman.
Thad Paul, managing director of The Carlyle Group said he believes the Lakeway Resort has a strong potential for growth.
"The strong job growth we are seeing in the Austin feeder markets around Texas, and the opportunity to reposition the property through capital improvements and new management makes this an attractive investment," he said in a statement.
The new owners plan to upgrade the restaurant and expand its menu, Dow Hotel Co. founder and President Murray Dow II said in a statement.
"Other plans for next year also call for upgrading the ballroom, creating a unique wedding experience space, and refreshing the lobby and corridors," he said in a statement. "When completed, we will have a like-new resort in a stunning destination setting on Lake Travis."
The 174-room Lakeway Resort and Spa opened in 1963.