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Richmond Marriott Hotel Being Acquired by Apple REIT Seven for $53.3 million;
The Procaccianti Group Had Bought the 389 room Hotel in 2002 for $10.4 million
By Linda Dunham, Richmond Times-Dispatch, Va.McClatchy-Tribune Regional News

Dec. 8, 2007 - Richmond Marriott Hotel is being acquired by Apple REIT Seven, a local real estate investment group. The sale should be completed sometime in January.

According to a filing with the Securities and Exchange Commission, Apple REIT Seven will pay $53.3 million for the 18-floor hotel at 500 E. Broad St. Company officials declined to comment on the purchase.

The Procaccianti Group of Cranston, R.I., bought the hotel in 2002 for $10.4 million after the owner sought bankruptcy protection.

The hotel, with 389 rooms plus 10 suites, underwent a $12 million renovation in 2004. Officials from Procaccianti, which owns four hotels in Virginia, including the Sheraton Richmond West, also declined to comment.

Calls to the Richmond Marriott, which opened in 1984 as part of a Broad Street revitalization, were not returned.

Created in 2005, Apple REIT Seven is headed by Glade M. Knight. From 1993 to 2005, he was chairman and chief executive of Richmond-based Cornerstone Realty Income Trust Inc., which owned apartment communities. In 2005, Cornerstone was folded into Colonial Properties Trust of Birmingham, Ala.

A real estate investment trust is a company that invests in property. By law it must distribute 90 percent of its taxable income annually to shareholders.

Apple REIT Seven was formed to invest in hotels, apartments and other real estate.

It reported in the SEC filing that it bought 23 hotels in the nine months that ended Sept. 30. It also entered into purchase contracts for 10 additional hotels, including the Richmond Marriott. Eight of those hotels are under construction.

The 33 hotels are Marriott and Hilton properties. Apple REIT Seven owns a hotel in Virginia, the Courtyard by Marriott in Alexandria. Contact Linda Dunham at (804) 775-8126 or ldunham@timesdispatch.com.

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Copyright (c) 2007, Richmond Times-Dispatch, Va.

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