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the 220 room Atlanta Airport Doubletree Club Hotel . $1.6 million Improvement Plans Includes Conversion to a Full Service Doubletree |
 Baltimore,
MD (November 3, 2006) - Alex. Brown Realty, Inc. (ABR), a national real
estate investment company, has entered into a joint venture with Piedmont
Hospitality to acquire the Atlanta Airport Doubletree Club Hotel, a 220
room hotel adjacent to the Hartsfield-Jackson Atlanta International Airport.
ABR Chesapeake Fund III, a value-added real estate investment fund sponsored
by ABR, provided an equity investment of $6.875 million to the venture.
Equity capital was arranged by Emi Iskandar of HVS Capital Corporation.
The hotel, located immediately north of Atlanta�s airport in a mature and built-out area that presents significant barriers to new hotel construction, is well-positioned to meet the growing demand for hotel rooms generated by the airport�s ongoing expansion. The hotel has operated as a limited-service Doubletree Club Hotel since 1998. The property will be converted to a full-service Doubletree Hotel, and a $1.6 million improvement plan for the property will be implemented over the next 18 months. �The conversion is a great opportunity to add value to a well-located hospitality asset,� commented Peter Bancroft, ABR�s senior vice president. �Raising service levels will elevate the profile of the hotel and position the property to compete more effectively against its competitive set.� This is the first joint venture between ABR and Piedmont. �We�re pleased to work with Piedmont,� commented John Prugh, ABR�s president and CEO. �Piedmont has managed the hotel since 2002 and they bring extensive industry experience to the relationship - - a key factor given the operational risks associated with investments in the hospitality sector.� Robert Baldwin, Piedmont�s president and CEO, continued, �This is a terrific investment opportunity for our partnership - - our team looks forward to working with ABR to achieve superior returns for our investors and to maximize the value of this asset.� Alex. Brown Realty, Inc. (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com Piedmont Hospitality was founded in 1998 by Robert Baldwin. The Atlanta-based firm acquires and manages hospitality assets throughout the United States. The Atlanta Airport Doubletree Club Hotel is managed by Piedmont Atlanta Airport, a subsidiary of Piedmont Hospitality. www.piedmonthotels.com |
| Contact:
Alex. Brown Realty, Inc.
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