Joint owners will invest more than $5 million to complete renovations

After paying off the $21 million loan at the July 3 foreclosure auction, Seattle-based hotel investor The Dow Hotel Company and The Carlyle Group's Carlyle Realty Partners VI have acquired the Lakeway Resort and Spa.

The resort, which sits on 12 acres with 1,000 feet of waterfront on Lake Travis, was under renovation by its previous owner. The new joint owners will invest more than $5 million to complete the renovations to the AAA Four Diamond resort.

"The hotel is in good condition having recently completed a $15 million renovation in the past few years," DHC founder and President Murray L. Dow said in a news release. "We will upgrade the restaurant and introduce an expanded menu and complete some mechanical improvements this year."

Lakeway Mayor Dave DeOme thinks that it is a good idea for the resort to upgrade the restaurant, he said.

Dow also plans to do a complete makeover of the guest rooms and bathrooms, he said in a news release.

Other plans for the resort include upgrading the ballroom, creating a unique wedding experience space and refreshing the lobby and corridors, Dow said in the news release.

"I think the Lakeway Inn has been, is and will be an integral part of Lakeway, both from an employer and destination standpoint," DeOme said. "Anything that happens that will make it successful is a good thing."

The Carlyle Group, a Washington, D.C.–based company, sees growth potential in the Lakeway Resort and Spa, said Thad Paul, managing director of The Carlyle, in a news release.

"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," Paul said in the news release.

The companies were advised on the sale by Hospitality Funding LLC, a Palm Beach, Fla. boutique investment firm.

Lakeway Resort and Spa amenities:

• 174 luxury guest rooms, suites and villas
• More than 24,000 square feet of flexible meeting and function space for both business and leisure groups
• The San Saba Spa
• A full range of water activities
• 24 outdoor tennis courts
• Two indoor, climate-controlled tennis courts