Hotel Online  Special Report

  Prism Hotels Acquires the 280 room
Radisson Memphis Hotel
-
$8 Million Renovation of the Hotel to Begin Immediately; 
Patrick Jordan Named GM

Transaction Marks the First Acquisition for Prism in Five Years – 
Harbinger of More Deals to Come in 2005

Dallas, TX (December 14, 2004) - Prism Hotels, regarded as one of the savviest investors and managers in the hotel industry, announced that it has acquired the 280-room Radisson Memphis Hotel in Memphis, Tennessee, and plans an $8 million renovation of the property. 

The transaction is the first acquisition for Prism in more than five years, and according to CEO Steve Van signals the beginning of a period of additional purchases, strategic investments and joint ventures. The acquisition was made in partnership with 2M Real Estate Partners, Ltd., and Eiger Fund I, L.P., both of Dallas, and included acquisition and construction financing from Texans Commercial Capital, LLC.

Steve Van, CEO of Prism, said, “We are excited about this purchase, which reflects a seminal shift in our thinking about the hotel market and investment possibilities going forward.” He added, “We are in discussions intended to produce additional acquisition opportunities, small scale and large – and as always, are focused on unique situations that promise significant growth as well as exceptional returns on invested capital.”

The renovation of the Memphis Radisson will include the hotel lobby, meeting space, guest rooms and the adjacent TGI Friday’s restaurant. It will begin immediately, and conclude by the end of 2005. 

Van called the hotel “an unpolished gem in the heart of one of the most exciting cities in the country,” adding that “we are delighted to have the chance to elevate the hotel into one of the finest full-service offerings in the downtown area.”

Prism also announced that it has appointed Patrick Jordan as the hotel’s general manager. Jordan brings more than fifteen years of management experience in the hotel industry, with national companies such as Prism and Bristol Hotels and Resorts. His unique background includes developing a reputation as a manager of large-property renovation and re-branding projects at nationally-known hotels; positions as General Manager at the Crowne Plaza Meadowlands in New Jersey, and the Holiday Inn University in Olive Branch, Mississippi; and diverse management experiences including Director of Operations for the Dallas Museum of Fine Arts and owner/Operator of the Diamondhead Yacht Club, in Diamondhead, Mississippi.

About the Memphis Radisson
The hotel, located on Union Avenue just two blocks from the entertainment center at Beale Street, is also steps from the new FedEx Forum, home of the Memphis Grizzlies, and directly adjacent to AutoZone Park, home of the Memphis Redbirds. It offers more than 8,500 square feet of meeting space, a two-story parking garage, and easy access to Memphis’s most desirable attractions, restaurants and entertainment facilities. It is also well located to allow leisure and business travelers access to the 300,000 square foot Cook County Convention Center and many local stores, businesses and theaters.

About Prism Hotels
Based in Dallas, Prism Hotels is one of the fastest-growing full service hotel investment, management and development companies in the country.  The company currently manages 33 hotels with over 6,000 rooms for multiple owners in 11 states and the Caribbean. For information, please contact Steve Van at (214) 987-9300, or visit Prism’s website at www.prismhotels.com.

About Eiger Fund I, L.P. 
Based in Dallas, Eiger Fund I, L.P. is a private real estate investment company that has received total equity commitments in excess of $300 million through its prior Funds, of which $230 million has been invested to date with a gross asset cost of over $1.0 billion. Fund investors include family offices, banks, insurance companies, high net worth individuals and the principals of Eiger.

About 2M Real Estate Partners, Ltd.
2M Real Estate Partners, Ltd. is a real estate investment partnership with investments in quality real estate projects throughout the country. 2M specializes in structuring, investing and asset managing, resulting in value creation through sale or refinancing on a medium-term time horizon. Morton H. Meyerson and his family are the major investors in 2M, which has deployed more than $70 million in equity since it was founded in 1993.

E2M Partners LLC
Eiger and 2M Real Estate have joined forces and are in the process of raising a new Fund for 2005 under the name E2M Value Added Fund.  For information, please contact Paul Rowsey at (214) 443-1998, or visit E2M’s website at www.e2mpartners.com.

Contact:
Michael G. Frenkel
M Frenkel Communications, Inc. 
(212) 808-6556
michael@mfcpr.com

Also See Prism Hotels Conference Takes Hotel Servicers 'Fishing for Solutions' / April 2003
Prism Hotels of Dallas Sells the 355-room Sheraton Capital Center - Raleigh for Approximately $21.4 million / March 2003


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