News for the Hospitality Executive
Concord Hospitality Enterprises Sells 19-hotel Portfolio
Properties to Moody National Cos. for $440 million
Plans to Build New Hotels with Proceeds
|RALEIGH-DURHAM, N.C., September 13, 2007—Concord Hospitality
Enterprises, one of the nation’s top-ranked hotel developer/owner/operators,
today announced plans to build $500 million in new hotels as part of its
goal to double its portfolio size to 100 owned and managed hotels by 2010.
The announcement came on the heels of the sale by Concord of a 19-hotel
portfolio of Marriott-branded properties in eight states for $440 million.
The purchaser, Houston-based Moody National Cos., also agreed to buy one additional hotel in a separate transaction that is expected to close by the end of the month. Concord will continue to manage all the properties under long-term contracts and will oversee $16 million in renovations across the portfolio planned by the buyer. Hodges Ward Elliott represented Concord in the transaction.
“We felt this was a good time to spin off these hotels to capture the appreciated value we’ve created over the years,” said Mark Laport, Concord Hospitality president and CEO. “The majority of our joint-venture investors have indicated they want to re-invest the proceeds, which gives us a significant war chest to develop and acquire hotels.
“Our goal is to bring our managed portfolio to 100 hotels in the next three years, in major U.S. markets and also overseas, where we see plenty of opportunity. With our substantial cash reserves and long track record in hotel development, ownership and management, we believe we have a competitive edge in the current hotel real estate market. The current uncertainty in the credit markets will not impact our plans because we have sufficient funding to achieve our objectives. We believe the timing is right for development and expect to have at least nine hotels under way by year end and are in active negotiations on another 15 to 20 sites. We will continue to focus on premium-branded hotels under such flags as Marriott, Hilton, Starwood and Intercontinental.”
The average effective age of the sold portfolio is approximately six years. Thirty percent of the hotels are four years old or less and all have significant cash flow and growth potential.
The portfolio of sold hotels includes:
1. Courtyard Altoona Altoona, PA 105 roomsTotal Rooms: 2,458
About Concord Hospitality
Concord Hospitality Enterprises Company
|Also See:||Concord Hospitality and Oxford Development Presented “Historic Preservation Award” By the City of Pittsburgh for the Development of The Courtyard by Marriott, Downtown Pittsburgh / May 2004|