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First-Quarter Hotel Industry MA Hits Record $32.2 Billion,
The Lodging Research Network Says
REITs Play a Larger Role in Consolidation, Reports

NEW YORK, April 6, 1998 - First-quarter 1998 announced and completed hotel industry mergers and acquisitions totaled $32.2 billion, according to the Lodging Research Network ( ), the Internet-based resource for lodging industry data and information from Coopers Lybrand L.L.P. That's a record -- and more than three times the $8.9 billion in hotel industry MA that occurred in all of 1997, according to

"Hotel industry MA will proceed apace throughout 1998," according to Bjorn Hanson, Ph.D., chairman of the Coopers Lybrand lodging and gaming group, creators of the lodging research network.  "There were 18 deals in the first quarter of 1998, versus 21 for all of 1997. This year will certainly bring more deals than last year, but among lesser-known companies," Hanson added. Eleven hotel real estate investment trust (REIT) deals accounted for $25.7 billion -- or 80 percent by dollar value -- of the first quarter's total of 18 deals worth $32.2 billion, the Lodging Research Network says.

In the year-ago period, two REIT deals accounted for just $584 million, or less than one-third, of that quarter's five completed deals valued at $1.9 billion, reports. For 1997 overall, five REIT deals accounted for $1.3 billion, or just 15 percent, of the year's 21 deals valued at $8.9 billion.

"Some REIT transactions of significant size closed in the first quarter," Hanson noted. "We will continue to see major transactions involving REITs of various configurations, including the so-called 'paper-clip' REIT as well other types of REITs that have yet to emerge," Hanson added.

Completed Hotel MA Deals, YTD 1998
Value ($millions)
Starwood Hotels  Resorts Westin Hotels  Resorts  1,570
Patriot American Hospitality Wyndham Hotel Corp. 1,100
Promus Hotel Corp. Harrison Conference Assocs., Inc. 60
Patriot American Hospitality WHG Resorts  Casinos 300
Starwood Hotels  Resorts ITT Corp. 14,600
Whitehall Street Real Estate Limited Chartwell Leisure Inc. 348.5
Pending Hotel MA Deals, YTD 1998
Value ($millions)
FelCor Suite Hotels Bristol Hotels  1,900
Patriot American Hospitality Summerfield Hotel Corp. 170
Servico Inc. Impac Hotel Group 111.8
CapStar American General Hospitality 3,000
CapStar Metro Hotels n/a
Bristol Hotel Co.  Omaha Hotel Inc. 100
Patriot American Hospitality Carnival Hotels  Resorts / 
GenComAmerican Hospitality
Patriot American Hospitality Interstate Hotels 2,100
The Meditrust Companies La Quinta Inns, Inc. 3,000
Boykin Lodging Company Red Lions Inns L.P. 271
Patriot American Arcadian International 142
Bass PLC Inter-Continental 2,900
Source:  Coopers  Lybrand L.L.P.

Coopers Lybrand's Lodging Research Network ( ) makes available via the Internet Coopers Lybrand's renowned econometric forecasts for the lodging industry, breaking lodging industry news, an exclusive database of lodging industry real estate acquisitions, financial data of publicly traded lodging companies (including SEC filings), new hotel construction data, lodging census data from Smith Travel Research as well as an extensive research library that includes U.S. econometric and demographic statistics. For more information about the Lodging Research Network, call toll-free 1-800-576-6656. One of the world's leading professional services firms, Coopers Lybrand L.L.P. provides services for enterprises in a wide range of industries. The firm offers its clients the expertise of more than 16,000 professionals and staff located in 100 U.S. cities and, through the global network of Coopers Lybrand International, more than 74,000 people in 142 countries worldwide.

Patricia Holtz of Shandwick, 
for Coopers Lybrand

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