| SPOKANE, Wash., - July 8, 1998 - Cavanaughs
Hospitality Corporation (NYSE: CVH) today announced they have signed an
agreement to purchase four full-service hotels comprised of 651 rooms from
Sunstone Hotel Investors, Inc. for an undisclosed amount. The sale is expected
to close in August 1998, subject to customary closing conditions.
Cavanaughs plans to re-flag the four hotels under the Cavanaughs brand. Upon closing of this acquisition the total number of hotels owned by Cavanaughs will be 18. The properties are located in Boise, Twin Falls and Pocatello, Idaho, and Helena, Montana. The four hotels will add 10 restaurants and lounges and approximately 32,600 square feet of meeting space to the Cavanaughs chain, keeping consistent with the acquisition strategy of buying hotels that can accommodate varying sizes of groups and conventions while attracting business and leisure travelers as well. This acquisition positions Cavanaughs Hospitality Corporation as the largest owner-manager of a full-service hotel brand in Idaho and Montana.
"We're very happy to be getting into these strategic locations. This will increase our ability to move our customers around the Northwest," said Don Barbieri, President and CEO. "Having properties in two state capitals is important and the four properties really in-fill a geographic region that will connect our newest property in Salt Lake City, Utah to the rest of our chain. We believe that this purchase will immediately be accretive to our shareholders."
The 238-room Boise Park Suite Hotel (Boise, Idaho), is located in Boise's Park Center, a major business district with excellent access to Boise State University, and to both downtown and the airport. Boise, the state capital and largest city in Idaho, will be a strategic location for Cavanaughs, which earlier this year purchased a hotel in Idaho's second largest city, Idaho Falls.
The 112-room Canyon Springs Park Hotel (Twin Falls, Idaho), is located at the intersection of I-84 and I-93, on the edge of the scenic Snake River Canyon, which provides numerous scenic and recreational opportunities. Twin Falls is the crossroads for travelers going to and from Nevada along I-93 and those traveling East and West along I-84, which is the route that takes people from Boise to Salt Lake City, Utah, and national parks in Montana, Wyoming, and Eastern Idaho.
The 152-room Pocatello Park Hotel and Convention Center (Pocatello, Idaho) is located at the crossroads of I-15 and I-86, interstates that transport people North to Idaho Falls, Yellowstone National Park, and Jackson Hole Wyoming, and South to Salt Lake City. Numerous outdoor activities surround the city which is also the home of Idaho State University.
The 149-room Colonial Inn (Helena, Montana) is located in Helena, the state capital of Montana. This property will be integral to Cavanaughs' ability to move conferences in their rotations around the state and region and will compliment Cavanaughs' two existing properties in the state, both of which have conference facilities.
Upon purchasing these properties, Cavanaughs Hospitality Corporation will serve the Northwest with 3,756 full service hotel rooms in 18 hotels, including 45 restaurants and lounges and 179,900 square feet of meeting space. In addition, CVH provides entertainment services through GB Select-a-Seat, a 20-outlet computerized ticket company, and GB Presents, a Broadway and special event presenting company. CVH also manages 3.1 million square feet of third party property management, 2,200 residential units, and owns 590,000 square feet of office and retail space.
Statements in this release may be construed to be forward
looking and are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
all forward looking statements involve risks and uncertainties, including
without limitation, risks relating to the operation and acquisition of
hotels, the availability of capital to finance growth, the benefit of utilizing
cash to repurchase stock and the historical cyclicality of the lodging
industry, as well as the other matters disclosed in the documents filed
by the Company with the Securities Exchange Commission.