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WASHINGTON - Oct. 5, 1999 - MeriStar Investment Partners, a $400 million
investment partnership, today announced that it has agreed to acquire the
315-room Hilton Newark / Fremont Hotel in Newark, Calif.
The property will be the sixth hotel acquired by the partnership, in a transaction expected to close by year end. The partnership plans to invest $6 million in the first year to renovate the property. Participants in the investment partnership are MeriStar Hospitality Corporation (NYSE:MHX), MeriStar Hotels & Resorts, Inc. (NYSE:MMH), and Oak Hill Capital Partners, L.P., a private equity investment group. �The Hilton Newark/Fremont is located on the northern edge of Silicon Valley in an area home to a growing number of high-tech startup companies,� said Paul Whetsell, chairman and CEO of both MeriStar Hospitality and MeriStar Hotels & Resorts. �This acquisition represents a classic opportunity to comprehensively renovate and reposition a premium-branded hotel with substantial meeting space to enhance its overall returns and value.� Located at 39900 Balentine Drive in Newark, the hotel consists of a seven-story tower and two-and three-story buildings surrounding a pool and garden courtyards. The Hilton Newark/Fremont features 11,000 square feet of meeting space, a fitness center, skin care salon and full-service restaurant and lobby lounge. MeriStar Hotels & Resorts will manage the hotels and oversee the $6 million renovation program. All guestrooms will be refurbished and updated; the restaurant and lounge will be renovated to give them a more casual, yet upscale, ambiance. �This will be the fifth Hilton managed by MeriStar Hotels in California, and its third hotel in the San Jose area, which will contribute to greater operational efficiencies,� Whetsell said. �We expect the combination of our proprietary management programs and planned renovations will produce significant performance improvements and establish the property as a market leader.� Oak Hill Capital Partners, L.P. is a $1.5 billion private equity partnership sponsored by Robert M. Bass and his team of investment professionals. Oak Hill Capital Partners makes significant investments in the form of acquisitions, build-ups, recapitalizations, restructurings, strategic joint ventures and minority stakes across a wide range of industries. Oak Hill Capital Partners Management, Inc., based in New York, New York and Menlo Park, California, manages the partnership. Washington, D.C.-based MeriStar Hospitality Corporation owns 117 principally upscale, full-service hotels in major market and resort locations with 29,468 rooms in 27 states, the District of Columbia and Canada. MeriStar Hotels & Resorts leases or manages 217 hotels with 45,328 rooms in 34 states, the District of Columbia, Canada and the U.S. Virgin Islands. |
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