Hotel Portfolio for $300 Million from
GE Asset Management
Hotels Will Receive Multi-Million Renovations and Re-branding
|PROVIDENCE, R.I., June 6, 2005 — The Procaccianti Group (TPG), today
announced that it has signed a binding agreement to acquire a portfolio
of three Doubletree Guest Suites and two Doubletree hotels from GE Asset
Management for $300 million.
With the completion of this transaction, TPG will have completed, or have in progress, nearly $1 billion in acquisitions and development year to date in 2005. The five hotels are located in Tyson’s Corner, Va., Chicago (Michigan Avenue), Ill., Atlanta (Perimeter Center), Ga., Paradise Valley (Scottsdale), Ariz., and Santa Monica, Calif. The transaction is expected to close July 1, 2005. TPG is a New England-based, full-service, privately owned hotel ownership, management and construction company.
The company intends to undertake a multi-million dollar upgrading and re-branding of the existing hotels to further improve their competitiveness. The Doubletree Guest Suites Chicago, Ill. will be converted to a Hilton Suites, The Doubletree Guest Suites Atlanta, Ga. will be converted to a Hilton Suites, The Doubletree Guest Suites Santa Monica, Calif. will be converted to an Embassy Suites, and The Doubletree Resort Paradise Valley, Ariz. will remain a Doubletree. The extent of the renovations will be determined on a hotel-by-hotel basis. In addition, TPG will take over management of each property. While not finalized, TPG is in advanced negotiations with Starwood Hotels & Resorts to convert the remaining hotel to the Westin brand.
“This portfolio acquisition fits perfectly with our strategy of acquiring upscale hotels in markets with high barriers that can benefit from substantial renovations and brand repositioning,” said Robert Leven, executive vice president. “In addition, this acquisition provides beachheads for the company in the western region of the United States, which will enable us to grow our business nationwide.”
“We are converting four of the five properties to brands within the Hilton family of brands, which strengthens our affiliation with this important franchisor,” added Jim Procaccianti, president and CEO. “Hilton will continue to be one of our key strategic brand partners as we continue to grow our company.”
Specifics on the five hotels are as follows:
1. The 224-suite Doubletree Guest Suites Atlanta-Perimeter in Georgia is located at 6120 Peachtree Dunwoody Road in Atlanta’s premier business district. The hotel is minutes north of downtown Atlanta near the Perimeter Mall and the Dunwoody MARTA station.
2. The 345-suite Doubletree Guest Suites Chicago-Downtown in Illinois, located at 198 E. Delaware Place, is one block east of Chicago’s Magnificent Mile on Michigan Avenue.
3. The 398-room Doubletree Hotel & Executive Meeting Center-Tysons Corner in northern Virginia is located at 7801 Leesburg Pike. Downtown Washington, D.C., Dulles International Airport, Reagan National Airport and Tysons Corner shopping center are a short drive from the hotel.
4. The 387-room Doubletree Paradise Valley Resort/Scottsdale, is located at 5401 N. Scottsdale Road in Scottsdale, Ariz. The hotel is situated just minutes from Old Town Scottsdale, Phoenix Sky Harbor International Airport, and numerous golfing and shopping outlets.
5. The 253-suite Doubletree Guest Suites Santa Monica in California,
located at 1707 Fourth Street, is just minutes from the Southern California
coastline, downtown Los Angeles, Beverly Hills and Hollywood.
“The Procaccianti Group has an outstanding reputation as an owner, and we look forward to having a Hilton Family flag on the majority of these hotels,” said Robert M. La Forgia, senior vice president and chief financial officer, Hilton Hotels Corporation.
Operating for nearly 50 years, the Procaccianti Group is a full-service, privately owned, real estate company that acquires, manages and renovates upscale full-service hotels. The award-winning company is engaged in hotel and commercial property acquisitions, property management, hotel construction and design. TPG, which has been recognized by Hilton, Intercontinental and other major franchisors for its leading hotels, is involved in all aspects of the hotel industry, from finance sourcing, construction and design, to ownership and management.
With this acquisition, the Cranston, Rhode Island-based company will own and manage 32 hotels comprising nearly 8,000 rooms, as well as more than half a million square feet of meeting and conference space.
|Also See:||Thomas Niles Appointed Executive Vice President of Development for The Procaccianti Group / May 2005|