| MCLEAN, VA, August 20, 2004 - Highland Hospitality
Corporation (NYSE:HIH), a lodging real estate investment trust, or REIT,
announced today the acquisition of four hotels consisting of 1,687 rooms
from Wyndham International, Inc. (AMEX:WBR) for $227 million, or $134,500
per room, plus customary closing adjustments. The Company financed
a portion of the acquisition with a $160 million fixed-rate mortgage provided
by JP Morgan Chase Bank. The seven-year loan carries an interest
rate of 6.65 percent.
The four-hotel portfolio consists of the 510-room Hilton Parsippany
in Parsippany, New Jersey, the 495-room Crowne Plaza Hotel Atlanta-Ravinia
in Atlanta, Georgia, the 360-room Wyndham Wind Watch Hotel in Hauppauge,
New York and the 322-room Tremont Boston � A Wyndham Historic Hotel in
Boston, Massachusetts. Crestline Hotels & Resorts, Inc. will
manage the Parsippany Hilton, Crowne Plaza Atlanta-Ravinia and Boston Tremont
hotels. The Wyndham Wind Watch Hotel will be converted to the Hyatt Regency
Wind Watch Long Island and managed under a contract with Hyatt Hotels.
James L. Francis, Highland�s President and CEO, stated, �We are excited
about our purchase of these four assets. This acquisition fits well with
our stated strategy of investing in upscale full-service hotels in major
urban markets with high barriers to entry. This portfolio will be
a great addition to our balance sheet and we believe its long-term performance
will benefit from our renovation and repositioning efforts, as well as
from improving lodging trends within these markets.�
The Company plans to invest an additional $25 million to renovate, re-brand
or reposition these assets, including approximately $10 million, or $28,000
per room, to upgrade the Wind Watch hotel to the Hyatt Regency brand, approximately
$6 million, or $18,600 per room, to reposition the Tremont Boston hotel,
approximately $7 million, or $14,100 per room to renovate and reposition
the Crowne Plaza Atlanta-Ravinia hotel and the remaining $2 million, or
$3,900 per room, to enhance the Hilton Parsippany hotel.
About the Hotels
Hilton Parsippany
The 510-room Hilton Parsippany hotel is situated within a business
campus setting that includes offices for such companies as General Motors,
Philip Morris/Kraft, Deloitte & Touche, ADP and Tiffany Corporation,
and is located approximately 25 miles from Newark International Airport.
Recently renovated in 2001, the property contains 30,000 square feet of
flexible meeting space and two on-site restaurants, including a Ruth�s
Chris Steak House. Other facilities and amenities include a modern
fitness center, two pools, two tennis courts, a basketball court, an |
Hilton Parsippany
One Hilton Court
Parsippany, NJ 07054 |
on-site business center, guest room high-speed internet access and a free
shuttle to the local companies within the business complex.
Crowne Plaza Hotel Atlanta-Ravinia
The 495-room Crowne Plaza Hotel Atlanta-Ravinia is situated in the
heart of Atlanta�s Perimeter Center business district, conveniently located
in proximity to several Fortune 500 companies and minutes from downtown,
Buckhead and Atlanta�s professional sports complexes. In addition,
the hotel is easily accessible from Atlanta�s Hartsfield International
Airport via the city�s MARTA mass transportation system. The property
features 33,000 square feet of flexible meeting space and two on-site restaurants,
including Atlanta�s only four diamond Italian restaurant, LaGrotta.
Other hotel amenities include an indoor pool, high-speed internet access,
a fitness center, limousine service and complimentary parking. Highland
Hospitality plans to invest an additional $7 million to renovate and upgrade
the guestrooms, meeting facilities, lobby, lounge and other common areas.
Hyatt Regency Wind Watch Long Island
| The 360-room Hyatt Regency Wind Watch
Long Island is located in Hauppauge, in the heart of New York�s Long Island,
and approximately 50 miles from Manhattan. The property caters to
both business and leisure demand with approximately 18,000 square feet
of flexible meeting space and a resort-like setting, including access to
the adjacent Hamlet Wind Watch Golf & Country Club. Other amenities
provided by the hotel include indoor and outdoor pool facilities, a health
club and state-of-the-art meeting facilities providing wireless internet
connections. Highland Hospitality |
Hyatt Regency Wind Watch Long Island
formerly Wyndham Wind Watch Hotel
1717 Motor Pkwy
Hauppauge, NY 11788 |
plans to invest $10 million to renovate and upgrade the guestrooms, meeting
facilities, restaurant and other common areas according to the Hyatt Regency
brand standards. The newly flagged Hyatt hotel will be the only Hyatt-branded
hotel on Long Island.
Tremont Boston Hotel
The 322-room Tremont Boston Hotel is situated in downtown Boston in
the heart of the city�s Theatre District. The hotel is centrally
located near Boston�s financial district and government center, and only
blocks away from Boston Common, Newbury Street, Faneuil Hall Marketplace
and the Back Bay. The city�s underground transportation system is
located directly across the street and provides convenient access to such
attractions as Fenway Park and the Fleet Center. Highland Hospitality
plans to invest an additional $6 million to reposition the hotel and upgrade
the guestrooms, lobby and other common areas.
Highland Hospitality Corporation is a self-advised lodging real estate
investment trust, or REIT, focused on hotel investments primarily in the
United States. With the acquisition of these four hotels, the company now
owns 14 hotel properties with an aggregate of 4,168 rooms in eight states.
Certain statements and assumptions in this press release contain or
are based upon �forward-looking� information and are being made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. |
