(1,687 rooms) from Wyndham for $227 million,
or $134,500 per room
|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
Crowne Plaza Hotel Atlanta-Ravinia
Hyatt Regency Wind Watch Long Island
Tremont Boston Hotel
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.
|Also See:||Sycuan Band of Kumeyaay Indians Acquires the Historic U.S. Grant Hotel from Wyndham International; Names American Properties Management Corp. Operator / December 2003|
|Wyndham Sells the Mayfair - A Wyndham Historic Hotel to Roberts Mayfair Hotel, LLC; Remains in Brand under 10-Year Management Agreement / July 2003|
|Wyndham International Continues Sale of Non-Strategic Assets; NYSE's Listing and Compliance Committee Agrees to Continue Listing the Company's Common Stock through Nov. 15, 2002 / Oct 2002|