Joint Venture to Acquire the 500 room Hilton
Alexandria Mark Center for $93.1 million
VA - June 23, 2005 -- The Hilton Alexandria Mark Center has been acquired
from Hilton Hotels Corporation (NYSE:HLT) for $93.1 million by a joint
venture formed by Denver-based Amstar Group, LLC ("Amstar") and Memphis-based
Davidson Hotel Company ("Davidson"). The 500-room, full-service hotel,
managed by Davidson, will remain under the Hilton flag as a Hilton franchisee.
Amstar and Davidson announced that the hotel would undergo a $9.5-million
renovation of the guest rooms and commercial areas in the coming weeks.
"The fact that we closed all cash to meet the seller's expedited timeframe is another great example of how nimble Amstar can be because of our balance sheet," said Gabe L. Finke, CEO of Amstar Group. "We are very excited to be teaming up once again with Davidson. Their proven track record in conjunction with their relentless focus on improving operations makes them an ideal partner. When you combine that with a great market with strong fundamentals, a great property with excellent amenities, and a great brand in Hilton, this opportunity exemplifies our investment philosophy."
This landmark hotel property acquisition is an example of Amstar's value-added investment strategy and the private equity firm's partner-friendly approach to joint ventures with highly qualified operators.
"Amstar is a highly respected real estate investor and we are honored that they have selected Davidson to work with them to acquire and manage the Hilton Alexandria Mark Center," said Wilton D. "Chick" Hill, president of Davidson Hotel Company. "This is our third transaction together and we are extremely pleased to be associated with Amstar's outstanding professionals. We will do everything possible to continue to build upon the success of this exceptional hotel property."
"We are delighted to have completed this transaction with Amstar and Davidson and are pleased that this outstanding asset will remain part of the Hilton Family. This transaction builds upon our existing strong relationship with both Amstar and Davidson," said Robert M. La Forgia, senior vice president and chief financial officer, Hilton Hotels Corporation.
The Hilton Alexandria Mark Center is located on Seminary Road in Alexandria, adjacent to a 43-acre botanical reserve and less than five miles from the center of Washington, D.C.
In addition to its 500 guest rooms, the Hilton Alexandria Mark Center also boasts 45,000 square feet of meeting space that includes an IACC-approved Executive Meeting Center. Breakfast, lunch and dinner are served at Finn and Porter, the facility's on-site restaurant.
This is the third property Davidson has managed for Amstar. Davidson currently manages Amstar's Doubletree Hotel in Palm Beach Gardens, Florida and also managed an independent hotel in Washington, D.C. that underwent extensive renovations to reposition the asset in the market, and was sold by Amstar in 2004, with Davidson remaining involved in the property as manager for the new owners.
About Davidson Hotel Company
About Amstar Group
|Also See:||The 495-room Radisson Plaza Hotel at Mark Center in Alexandria, Va., Purchased by Hilton Hotels Corp. for $51.5 Million / Feb 1999|
|Hilton Alexandria Mark Center Opens $5 Million Executive Meeting Center Certified by the International Association of Conference Centers / July 2003|