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484-room Marriott Irvine for $92.5 million |
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ARLINGTON, Va., June 28, 2004 � MeriStar Hospitality Corporation (NYSE:
MHX), one of the nation�s largest hotel real estate investment trusts (REIT),
today announced that it had completed the acquisition of the Marriott Irvine
for $92.5 million. The 484-room landmark hotel will be operated by
Marriott International under a long-term contract.
The company financed a portion of the acquisition with a $55.5 million fixed-rate mortgage provided by Connecticut General Life Insurance Company. The seven-year term loan carries an interest rate of 5.69 percent. �We continue to take advantage of the current low interest rate environment by using mortgage debt to finance a modest portion of the acquisition costs, which also reduces our average borrowing costs and improves our equity yields,� said Donald D. Olinger, chief financial officer. �We remain selective acquirers of larger properties, located in major urban markets or high-end resort destinations with high barriers to entry, strong brand affiliations and significant meeting space, acquisitions that also will be accretive to earnings.� Arlington, Va.-based MeriStar Hospitality Corporation owns 79 principally upscale, full-service hotels in major markets and resort locations with 22,186 rooms in 23 states and the District of Columbia. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Ritz-Carlton, Westin, Doubletree and Radisson. 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. |
Contact:
MeriStar Hospitality Corporation Bruce Riggins VP, Strategic Planning & Analysis (703) 812-7223 www.meristar.com |
Also See: | MeriStar Hospitality Completes Sale of Five Hotels for Aggregate $29.5 Million / March 2004 |
MeriStar to acquire the Ritz-Carlton Pentagon City in Arlington, Va. for $93 million / April 2004 |