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Golf Club from MeriStar for Approximately $367 |
BETHESDA, Md., February 1, 2006 � MeriStar Hospitality Corporation
(NYSE: MHX), one of the nation�s largest hotel real estate investment trusts
(REIT), today announced that it has signed a definitive agreement to sell
a portfolio of nine hotels (1,948 rooms) and a golf and tennis club, all
located in Florida, to an affiliate of The Blackstone Group for approximately
$367 million in cash, subject to certain adjustments and satisfaction of
customary closing conditions. The company expects the transaction
to close by the end of the first quarter 2006. The company intends
to use the majority of the proceeds to further reduce debt, particularly
its most expensive 10.5 percent senior unsecured debt, which currently
is callable by the company.
The properties to be sold include:
Bethesda, Md.-based MeriStar Hospitality Corporation owns 58 principally upper-upscale, full service hotels in major markets and resort locations with 17,003 rooms in 19 states and the District of Columbia. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Ritz-Carlton, Westin, Doubletree and Radisson. For more information about MeriStar Hospitality, visit the company�s website: www.meristar.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. |
Contact:
MeriStar Hospitality Corporation
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