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News for the Hospitality Executive |
| ARLINGTON, Va., January 13, 2004 - MeriStar Hospitality Corporation (NYSE: MHX), one of the nation's largest hotel real estate investment trusts (REIT), today announced that it has completed the sale of four hotels with a total of 826 rooms to two separate buyers for aggregate gross proceeds of $33.9 million. Since January 2003, the company has sold 18 hotels with 3,412 rooms, for total gross proceeds of $156.3 million, or approximately $46,000 per room. The sales are part of a previously announced plan to dispose of non-core hotel properties and reshape the company's portfolio. Proceeds from the sales may be used to reinvest in the company's core properties, for hotel acquisitions, or to repay senior debt.
The four hotels are: |
Hotel Name Location # of Rooms |
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The company also announced that it has withdrawn eights assets from its original list of hotels planned for disposition. The eight hotels with 1,818 rooms were projected to generate $105 million to $115 million in gross proceeds. "Given that we are in the early stages of an economic recovery and our liquidity position has greatly improved with our recent capital markets transactions, we re-evaluated our asset disposition program and decided to retain eight of the hotels previously marketed for sale," said Paul W. Whetsell, chairman and chief executive officer. "These hotels generate stronger levels of cash flow than the average of the ones we are selling, and we believe we currently will benefit from holding these properties. "We have 16 assets, with 4,131 rooms, remaining in our disposition program, and we expect to substantially complete the program by the end of the first quarter," he said. "The disposition of the 16 additional hotels should generate total gross proceeds of $110 million to $130 million." Arlington, Va. based MeriStar Hospitality Corporation owns 89 principally upscale, full service hotels in major markets and resort locations with 24,169 rooms in 23 states, the District of Columbia and Canada. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Westin, Doubletree and Radisson. For more information about MeriStar Hospitality Corporation, visit the company's Web site: www.meristar.com. This press release contains forward-looking statements about MeriStar Hospitality Corporation, including those statements regarding future operating results, the timing and composition of revenues and expected proceeds from asset sales, among others. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including the following: the current slowdown of the national economy; economic conditions generally and the real estate market specifically; the impact of the September 11, 2001 terrorist attacks and actual or threatened future terrorist incidents; the threatened or actual outbreak of hostilities and international political instability; governmental actions; legislative/regulatory changes, including changes to laws governing the taxation of REITs; level of proceeds from asset sales; cash available for capital expenditures; availability of capital; ability to refinance debt; rising interest rates; rising insurance premiums; competition; supply and demand for hotel rooms in our current and proposed market areas, including the existing and continuing weakness in business travel and lower-than expected daily room rates; other factors that may influence the travel industry, including health, safety and economic factors; and changes in general accounting principles, policies and guidelines applicable to REITs. Additional risks are discussed in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K for the year ended December 31, 2002. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. These statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. |
