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Inland American Real Estate Trust, Inc. to Purchase Three Autograph
Collection Hotels from Richard Kessler’s Collection

OAK BROOK, Ill.-October 1, 2012--Inland American Lodging Group, Inc. (IALG), a wholly owned subsidiary of Inland American Real Estate Trust, Inc. (Inland American), announced purchase agreements with acclaimed hotelier and developer Richard Kessler to acquire a portfolio of three artistically inspired luxury hotels. This mutually beneficial collaboration includes the purchase of Grand Bohemian Hotel in Orlando, Fla., Bohemian Hotel Savannah Riverfront in Savannah, Ga., and Bohemian Hotel Celebration in Celebration, Fla. All three properties represent a market share of 150% or more within their competitive sets and are founding hotels of Marriott's Autograph Collection, a collection of high quality boutique hotels selected for their rich character and unique details.

"These hotels have a combined average RevPAR in excess of $140 today and are well positioned to experience strong growth from their recent affiliation with Marriott's Autograph Collection," said Marcel Verbaas, president and CEO, Inland American Lodging Advisor, Inc. "Above all, this transaction provides strong equity returns for our shareholders, as we are acquiring these hotels at an attractive yield and a very accretive multiple. Boosted by the favorable mortgage financing, we expect that this acquisition will yield double-digit equity returns in our first year of ownership."

Inland American closed on the acquisition of Bohemian Hotel Savannah Riverfront on Aug. 9, 2012. This acquisition was partially financed with a new $27.5 million first mortgage loan provided by Bank of America. The closing on Grand Bohemian Hotel Orlando is expected to occur by December 2012. The acquisition of Bohemian Hotel Celebration is expected to be completed in January 2013.

"This transaction gave us the opportunity to add three high-quality, market-leading luxury hotels in excellent condition to Inland American. The acquisition of these assets further exemplifies our strategy of continued improvement of our portfolio while adding hotels that give us superior yields," Mr. Verbaas continued.




Grand Bohemian Hotel Orlando
Bohemian Hotel Savannah Riverfront Bohemian Hotel Celebration

Grand Bohemian Hotel Orlando
Celebrated as an experience in art and music, the AAA Four Diamond Grand Bohemian Hotel Orlando takes center stage as downtown Orlando’s landmark luxury icon. Opened in 2001, the hotel offers 247 guest rooms featuring pillow-top beds and suites with Jacuzzi baths, as well as a relaxing heated outdoor pool and in-room massage treatments and approximately 10,000 square feet of meeting space. The Grand Bohemian is located moments away from downtown’s cultural gems and Orlando’s magical theme parks.

Bohemian Hotel Savannah Riverfront
A striking landmark along the famed River Street in Savannah, Ga., Bohemian Hotel Savannah Riverfront is one of the city’s prized jewels and hottest hangouts. Opened in 2009, the 75-room Autograph Collection boutique hotel, located directly on the Savannah River among popular attractions and nightlife, offers old Savannah charm with modern luxe style, as well as an authentic taste of the Hostess City’s hospitality. At Bohemian Hotel Savannah Riverfront, guests experience panoramic views from the only rooftop bar in Savannah - Rocks on the Roof - and gourmet dining at the casual-chic Rocks on the River. The waterfront hotel reflects the lively atmosphere of historic River Street, while adding its own edgy and modern twist.

Bohemian Hotel Celebration
Opened in 1999, this AAA Four Diamond boutique hotel features 115 guest rooms, a luxe lobby inspired by nature with a warm golden, cream and white décor reminiscent of sophisticated Floridian elegance. The hotel’s fine design includes a breathtaking Italian chandelier, natural linen furnishings, fresh orchids and handmade poplar bark tables. Captivating lakeside views invite guests to walk alongside the water for a stroll in the “unexpected Orlando,” take a swim in the inviting pool or relax in rocking chairs on the terrace.

Hodges Ward Elliott advised the seller on the transaction. The properties will continue to be managed by Kessler Collection Management under a 10-year management agreement.

“We are excited about embarking on this new relationship with Richard Kessler as we expand our investment in upper upscale and luxury hotels,” Verbaas stated. “We expect that we will continue to explore further opportunities to grow our relationship.”

In a separate transaction, Inland American recently sold a portfolio of 12 non-core select service hotels to an affiliate of Wheelock Street Capital for a total consideration of approximately $115 million. The transaction, which closed on September 13, resulted in the reduction of about $52 million in debt and generated net proceeds of approximately $61 million. The portfolio included a total of 1,643 rooms and consisted of seven upscale hotels and five mid-scale hotels. IALG was represented by CBRE and Maxim Hotel Brokerage in this transaction.

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 91 hotels branded under various Marriott, Hilton, Starwood, Hyatt, Fairmont and IHG brands that are managed either by the brand 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 June 30, 2012 Inland American owned, directly or indirectly through joint ventures in which it has a controlling interest, 938 properties, representing approximately 48 million square feet of retail, industrial and office properties, 9,563 multi-family units and 17,899 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.

About The Kessler Collection
Capturing the classical and unconventional spirit of Bohemian cultures, The Kessler Collection's portfolio of passionately created and artistically inspired boutique hotels boast chic design, luxe accommodations, enriching ambiance and intimate service. Whether visiting properties in Florida, Georgia, North Carolina, Colorado or New Mexico, each hotel's exquisite art, music and cultural influences, personally acquired for that hotel by the Kessler family, are deliberately approachable. Designed to inspire unforgettable experiences, Kessler guests are bathed in re-defined Bohemian luxury ranging from historic to chic. For more information on The Kessler Collection, please visit www.kesslercollection.com or call 407.996.9999.
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Contact:

Inland American Real Estate Trust, Inc.
Dan Lombardo
630-586-6314
dan.lombardo@inlandgroup.com

 

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Also See: Inland American Lodging Advisor, New Owner of the 492-room Renaissance Austin Hotel in Texas, Unveils Pure Austin Renovation Plans; Complete Property Renovation to Begin in October 2012 / April 2012

Inland American Real Estate Trust, Inc. Acquires Five Hotels in Five States Totaling 2,302 rooms for $393.1 million / March 2012
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