Hotel Online
News for the Hospitality Executive

advertisement
 
 

Concord Hospitality Enterprises Sells 19-hotel Portfolio of Marriott-branded
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 rooms
2.  Courtyard Columbus Airport Columbus, OH 150 rooms
3.  Courtyard Columbus Downtown Columbus, OH 149 rooms
4.  Courtyard Pittsburgh Downtown Pittsburgh, PA 182 rooms
5.  Courtyard Pittsburgh Shadyside Pittsburgh, PA 132 rooms
6.  Courtyard Pittsburgh Waterfront Pittsburgh, PA 94 rooms
7.  Courtyard Waterbury Waterbury, CT 199 rooms
8.  Courtyard Willoughby Willoughby, OH 90 rooms
9.  Courtyard West Palm Beach Airport West Palm Beach, FL 103 rooms
10.  Marriott West Des Moines West Des Moines, IA 219 rooms
11.  Renaissance Meadowlands Rutherford, NJ 163 rooms 
12.  Springhill Suites Des Moines West Des Moines, IA 97 rooms
13.  Springhill Suites Houston Houston, TX 191 rooms 
14.  Springhill Suites Washington Washington, PA 86 rooms
15.  Springhill Suites Pittsburgh Airport Pittsburgh, PA 102 rooms
16.  Residence Inn Midtown Atlanta, GA 78 rooms
17.  Fairfield Inn Meadowlands East Rutherford, NJ 141 rooms
18.  Fairfield Inn & Suites Butler Butler, PA 75 rooms
19.  Fairfield Inn & Suites Des Moines West Des Moines, IA 102 rooms
Total Rooms: 2,458

About Concord Hospitality
Concord Hospitality Enterprises Company, an award-winning hotel management and development company based in Raleigh-Durham, N.C., manages 51 hotels and with over 6,000 guest rooms in 11 states and two Canadian providences under such well-known brands as Renaissance, Marriott, Courtyard by Marriott, Residence Inn by Marriott, Fairfield Inn and Suites by Marriott, SpringHill Suites by Marriott, Hilton Garden Inn, Hampton Inn and Suites, and an independent boutique hotel.  Formed in 1985, the company was recently listed as one of the top management companies in the nation.  Concord properties are some of the most awarded hotels in the country, having won nearly 30 honors in the past two years alone.  For more information, visit www.concordhotels.com.

.
Contact:

Concord Hospitality Enterprises Company
www.concordhotels.com

 

.
.
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
.
.


 


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News | Classifieds| One-on-One |
Viewpoint Forum | Industry Resources | Press Releases
Please contact Hotel.Onlinewith your comments and suggestions.