OAK BROOK, Ill.--(March 28, 2012)--Inland American Lodging Group, Inc., a wholly owned subsidiary of Inland American Real Estate Trust, Inc., announced today that it has acquired five hotels for a total purchase price of approximately $393.1 million. The total includes a three-state, three-property portfolio acquired from DiamondRock Hospitality, as well as two other hotels located in California and Missouri acquired in separate transactions.
Purchase price for the DiamondRock portfolio totaled $262.5 million, or approximately $184,600 per key. It includes 1,422 rooms and more than 153,000 square feet of meeting and banquet space. All three high-quality, best-in-class properties are Marriott affiliated brands in strong, diverse markets.
“This is very significant transaction for Inland American,” said Marcel Verbaas, president and CEO, Inland American Lodging Advisor, Inc. “Inland American is receiving high-quality assets to enhance our portfolio and continue our expansion into the Upper-Upscale and Luxury segments of the market at attractive pricing. Also, the debt assumed on these properties enhances our equity return and our future capital expenditures into these properties should further strengthen their market position.”
The DiamondRock portfolio consists of the following hotels:
Renaissance Arboretum – Austin, TX
Renaissance Waverly – Atlanta, GA
Marriott Griffin Gate Resort & Spa – Lexington, KY
The hotels will continue to be managed by Marriott.
Inland American Lodging Group also recently purchased two additional hotels – the Marriott San Francisco Airport Waterfront and Hilton St. Louis Downtown. “The Marriott San Francisco Airport is a premier asset in the San Francisco market and is well positioned to take advantage of the diverse and growing demand drivers in the area,” Verbaas continued. “The Hilton St. Louis is a unique, strategically-located property in downtown St. Louis and we feel it is the right size investment for this market and will produce solid equity returns.”
Marriott San Francisco Airport Waterfront – Burlingame, CA
Hilton St. Louis Downtown – St. Louis, MO
About Inland American Lodging Advisor, Inc.
Inland American Lodging Advisor, Inc., located in Orlando, FL, focuses on acquiring and managing a diversified portfolio of lodging properties on behalf of Inland American Real Estate Trust, Inc. Inland American Lodging Advisor, Inc. currently oversees 103 hotels branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont, Wyndham, IHG and Choice brands that are managed either by the brand’s managers or independent third-party management companies. For further information regarding Inland American Lodging Advisor, please refer to the company website at www.inlandamericanlodging.com.
About Inland American Real Estate Trust, Inc.
Inland American Real Estate Trust, Inc. focuses on acquiring and developing a diversified portfolio of commercial real estate including retail, multi-family, industrial, lodging, office and student housing properties, located in the United States and Canada. The company also invests in joint ventures, development projects, real estate loans and marketable securities. As of December 31, 2011 Inland American owned, directly or indirectly through joint ventures in which it has a controlling interest, 964 properties, representing approximately 49 million square feet of retail, industrial and office properties, 9,563 multi-family units and 15,597 lodging rooms. Inland American is one of five REITs that are, or have been, sponsored by affiliates of The Inland Real Estate Group of Companies, Inc. For further information regarding Inland American, please refer to the company website at www.inlandamerican.com.
Inland American Real Estate Trust, Inc.
Dan Lombardo, 630-586-6314