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 Hospitality Properties Trust Sells 18 Homestead Hotels
For $205.35 Million 
 

NEWTON, Mass - Hospitality Properties Trust (NYSE: HPT) today announced that it has sold 18 Homestead Studio Suites hotels (2,399 rooms) for $205.35 million. HPT expects to recognize a gain on this sale of approximately $95 million. 

HPT purchased these 18 hotels in 1999 from Homestead Village, Inc. (which was then a publicly owned company) for $145 million. The expected gain reflects depreciation expense realized by HPT since 1999. Simultaneous with this purchase, these hotels were leased by HPT to a subsidiary of that seller for minimum rent of $15,960,000/year plus percentage rent based upon increases in gross revenues at the hotels. In 2006, the percentage rent received by HPT for these hotels was approximately $509,000. 
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  1. Homestead Studio Suites Hotels  330 Grand Regency Boulevard - Brandon, FL
  2. Homestead Studio Suites Hotels  2311 Ulmerton Road - Clearwater, FL
  3. Homestead Studio Suites Hotels  7550 State Road 84 - Davie, FL
  4. Homestead Studio Suites Hotels  8720 NW 33rd Street - Miami, FL
  5. Homestead Studio Suites Hotels  3873 West Commercial Boulevard - Tamarac, FL
  6. Homestead Studio Suites Hotels  5401 Beaumont Center Boulevard - East Tampa, FL
  7. Homestead Studio Suites Hotels  1339 Executive Park Drive - Atlanta, GA
  8. Homestead Studio Suites Hotels  7049 Jimmy Carter Boulevard - Norcross, GA
  9. Homestead Studio Suites Hotels  20141 Century Boulevard - Germantown, MD
  10. Homestead Studio Suites Hotels  939 International Boulevard - Linthicum Heights, MD
  11. Homestead Studio Suites Hotels  4515 North Carolina Highway 55 - Durham, NC
  12. Homestead Studio Suites Hotels  4810 Bluestone Drive - Raleigh, NC
  13. Homestead Studio Suites Hotels  4504 Brookfield Corporate Drive - Chantilly, VA
  14. Homestead Studio Suites Hotels  12104 Monument Drive - Fairfax, VA
  15. Homestead Studio Suites Hotels  8281 Willow Oaks Corporate Drive - Fairfax, VA
  16. Homestead Studio Suites Hotels  10961 West Broad Street - Glen Allen, VA
  17. Homestead Studio Suites Hotels  12190 Sunset Hills Road - Reston, VA
  18. Homestead Studio Suites Hotels  45350 Catalina Court - Sterling, VA
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In 2001, an entity affiliated with Blackstone Group (NYSE: BX) purchased Homestead Village, Inc. and HPT’s tenant for these hotels. On June 11, 2007, Blackstone sold Homestead Village, Inc. and the tenant entity together with a larger group of hotels to an affiliate of the Lightstone Group, a privately owned entity. This sale resolves outstanding disputes between HPT and Lightstone. Seventeen of these hotels were purchased by an affiliate of Lightstone for approximately $192.25 million. One hotel was purchased by HRPT Properties Trust (NYSE: HRP) for approximately $13.1 million, and this one hotel will be short term leased by an affiliate of Lightstone until that hotel property may be redeveloped as part of a larger project including adjacent property currently owned by HRPT Properties Trust. 

HPT intends to use the net proceeds from the sale of these hotels to reduce amounts outstanding under its revolving bank credit agreement. 

Hospitality Properties Trust is a real estate investment trust which owns 292 hotels and 186 hospitality and travel centers located throughout the United States, Puerto Rico and Ontario, Canada. 

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Contact:

Hospitality Properties Trust
Timothy A. Bonang, 617-796-8149
Manager of Investor Relations
www.hptreit.com 
 

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Also See: The Lightstone Group to Acquire Extended Stay Hotels (683 properties) from the Blackstone Group for $8 Billion / April 2007
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