351 room Hilton Glendale for $79.8 Million
from Hilton Hotels Corporation
Hilton Will Continue to Manage the Hotel
|COVINGTON, Ky. - June 23, 2005 -- Eagle Hospitality Properties Trust,
Inc. (NYSE:EHP) today announced it has acquired the Hilton Glendale in
Glendale, California, from Hilton Hotels Corporation (NYSE:HLT) for $79.8
million. Hilton will continue to manage the hotel. Featuring 351 well-appointed
rooms, the hotel is located in the heart of Glendale, a high barrier to
entry urban market and home to many entertainment, health care, manufacturing
and financial services companies.
Opened in 1991, the 19-story Hilton Glendale has 351 guestrooms as well as approximately 15,000 square feet of indoor meeting space, including an 8,000-square-foot ballroom and a 3,100-square-foot executive conference area. The hotel features two restaurants, the 150-seat Coffee Garden Restaurant and Lounge and the 82-seat Porter's Steak House, a new restaurant concept created by Hilton that recently received four-star recognition. The Hilton Glendale also features a business center, concierge services, fitness center, an outdoor pool and Jacuzzi and a five-story underground parking structure with space for over 500 cars. Hilton and Eagle have entered into a management arrangement for this hotel that took effect at closing.
Bill Blackham, President and Chief Executive Officer of Eagle, stated, "The acquisition of the Hilton Glendale is an important transaction for Eagle that matches each of our investment objectives. The hotel is strategically located in the center of Glendale's burgeoning office market. The region continues to exhibit healthy employment growth. The dynamic greater Los Angeles market is one of our top targeted markets and is consistent with our desire to increase the geographic diversification of our portfolio with high growth urban and resort markets. We are pleased to enter the Los Angeles market with such a strong, high quality, full-service asset and excited about the opportunity to expand our relationship with Hilton, which now includes eight hotels within the Hilton and Embassy Suites brands."
"Hilton Hotels has a longstanding relationship with Eagle," said Robert M. LaForgia, senior vice president and chief financial officer for Hilton Hotels Corporation. "Through this relationship we were able to structure a mutually beneficial transaction in a very timely manner. Glendale and the Tri-City markets have experienced strong growth to date, and we look forward to working together with Eagle at the Hilton Glendale to further enhance the hotel's position in these markets."
The City of Glendale is located approximately 10 miles north of downtown Los Angeles and is situated just east of Interstate 5 and bisected by Highway 134, a major highway that connects US 101 to Interstate 605. The third largest city in Los Angeles County, the City of Glendale, along with Pasadena and Burbank, make up an area commonly referred to as the Tri-Cities. The Glendale sub-market alone contains approximately 10.6 million square feet of commercial office space and benefits from major demand generators with large offices or headquarters such as Baskin-Robbins USA, Cigna Healthcare, The Disney Store, Glendale Federal Bank, IHOP Corporation, Nestle USA, DreamWorks Animation Studios, Walt Disney Imagineering and Public Storage. Based on statistics provided by Smith Travel Research for the 10-year period ending 2004, the Tri-City hotel market experienced compound annual room revenue growth of 5.2% and compound annual RevPAR growth of 3.8%.
Brian Guernier, Senior Vice President - Acquisitions, added, "The Tri-City hotel market has posted strong, consistent demand for the past decade, and the market is poised to generate healthy demand growth in 2005. We believe a significant opportunity exists to leverage the pricing power and competitive strengths of the Hilton Glendale to take advantage of the improving economic conditions throughout Southern California. We believe the Hilton Glendale is the best overall hotel product in the market. New bedding recently installed by Hilton, as well as other improvements planned by Eagle should continue to enhance the performance of the hotel."
Eagle Hospitality Properties Trust is a real estate investment trust focused on investment opportunities in the full-service and all-suites hotel industry. The Company owns 11 upper upscale full service and all-suites hotels encompassing approximately 2,900 guestrooms. The hotels are located in Arizona, California, Colorado, Florida, New York, Kentucky, Ohio and Illinois. More information on the Company can be found at www.eaglehospitality.com.
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises approximately 2,300 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R) and Homewood Suites by Hilton(R).
Certain matters discussed in this press release, such as Eagle Hospitality's expected operating performance and acquisition activity, are forward-looking statements within the meaning of the federal securities laws.
Eagle Hospitality Properties Trust
|Also See:||Michael D. Hirsch and William Fitzgerald Named Area Vice President, South Central for Hilton Hotels Corporation / May 2004|
|Eagle Hospitality Properties Trust Completes Acquisition of 270-room Embassy Suites Hotel Phoenix-Scottsdale for $33 Million / February 2005|