Washington, D.C. for $48.75 million; Appoints Crestline to Manage
the Property as an Independent
VA, December 7, 2005 - Highland Hospitality Corporation (NYSE:HIH), a lodging
real estate investment trust, or REIT, announced today the signing of a
definitive agreement to acquire the 144-room Churchill Hotel in Washington,
D.C. The purchase price for the hotel is $48.75 million.
The Company intends to close on this acquisition within the next ten days,
and has selected Crestline Hotels & Resorts, Inc. to manage the property
as an independent hotel.
James L. Francis, Highland’s President and CEO, stated, “We are pleased to announce our impending acquisition of the Churchill in downtown Washington, D.C., currently one of the strongest lodging markets in the country. This property is well-located and boasts very large guest room and suites, averaging in excess of 525 square feet. We are acquiring this property on a favorable trailing cap rate for D.C., and with our plans increase room count through conversion of a number of two-room suites in 2006, we expect our all-in investment to be less than $300,000 per key. This hotel is well-positioned to benefit from the favorable economic fundamentals forecasted for the nation’s capital.” The Churchill is located at 1914 Connecticut Ave. NW, Washington DC.
Highland Hospitality Corporation is a self-advised lodging real estate investment trust, or REIT, focused on hotel investments primarily in the United States. The Company currently owns 22 hotel properties with an aggregate of 6,564 rooms in 11 states and Mexico. Additional information can be found on the Company’s website at www.highlandhospitality.com.
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. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “ may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Highland Hospitality Corporation’s control. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
|Also See:||Whitewood, LLC, Appoints MeriStar to Manage the 144-room Churchill Hotel in Washington, D.C., The Former Sofitel Hotel Renamed The Churchill Hotel / May 2001|
|Whitewood, LLC Opens the MeriStar Managed Churchill Hotel in Washington, D.C.; Formerly the Sofitel / May 2002|