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McLean, Virginia � October 31, 2003 � Further evidence that hotel
real estate investor activity is building and that buyers are willing to
pay premium prices for well-located properties is demonstrated by Molinaro
Koger�s announcement today that the firm closed four full-service central
business district hotel transactions during the past week.
The Sheraton Hotel Charleston, marketed by Molinaro Koger on behalf of Starwood Hotels & Resorts Worldwide Inc., was sold to Raleigh/Cary, North Carolina-based Main Street Hotel, LLC. The 296-room property will undergo a renovation and will be renamed the Sheraton Hotel North Charleston - Convention Center. The Sheraton Hotel St. Louis and the Sheraton Hotel Independence (Cleveland), Ohio, were both marketed by Molinaro Koger on behalf of GF Management. The Sheraton Hotel St. Louis was sold to HMA Hotels of St. Louis which plans to upgrade guestrooms at the 185-room property. HMA Hotels, which owns six hotels in Missouri and Nebraska, is developing two new Holiday Inn Hotels & Suites located in O'Fallon, Illinois, and Poplar Bluff, Missouri. The Charleston Riverview Hotel, located in the historic district of Charleston, South Carolina, was marketed by Molinaro Koger on behalf of Wells Fargo Bank Minnesota, N. A., acting as Trustee for the registered CMBS certificate holders and was sold to Grace Hospitality, LLC. The 13-story, 334-room property will temporarily operate as an independent while the owners assess franchising options and complete a comprehensive redevelopment presently budgeted to exceed $14 million. The large number of transactions conducted by the international hotel brokerage firm so far this year is particularly notable given that analysts agree 2003 is a watershed year for hotel investment. �Deal pace and buyer interest continue to accelerate as we enter the fourth quarter,� said Robert Koger, President of Molinaro Koger. �The degree of investor interest exhibited during our recent marketing assignments confirms that well-built hotels in fundamentally sound markets are highly liquid at this point,� said Jeffrey Dauray, Managing Director of Molinaro Koger, who was the listing agent for both of the Charleston properties. �With RevPar stabilized, on solid footing and trending positive in most domestic markets, we are seeing remarkably high capital in-flows into our sector. Much of this capital is teaming with experienced operators. The debt and equity providers, drawn to the lodging sector�s attractive yields, are aggressively competing for suitable deals. Some savvy sellers have been quietly capitalizing on this favorable dynamic over the last quarter,� noted Mr. Dauray. John Jameson, Managing Director of Molinaro Koger, Chicago, and listing broker of the Sheraton St. Louis, concurred. �Full-service properties located in central business districts and convention
corridors are now commanding significant investor attention. This is a
shift compared with one year ago, when bidding between buyers was rare,
given the recent challenges of many properties to maintain rate during
a corporate travel slow down, � said Mr. Jameson. We are now seeing the
long-term prospects of these properties coming to fruition as bookings
grow. Buyer interest is sharpening in conjunction with this trend.�
For further information about these transactions and current listings, please contact Molinaro Koger at 703.760.9600 or at www.molinarokoger.com. Molinaro Koger is an international hotel real estate brokerage firm. The company structures boutique through luxury hotel transactions throughout the Americas and Europe. Headquartered in metro-Washington, DC, with offices in Atlanta, Chicago, Dallas and London, Molinaro Koger has captured the awards for Highest Volume, Largest Transaction and Salesman of the Year from Hotel Brokers International for each of the past five years. Joseph Molinaro founded the firm in 1959, and since then Molinaro Koger has successfully marketed hotel real estate, sponsored limited partnerships, and arranged financing for purchasers. Given the cyclical nature of real estate, the firm has weathered an array of highs and lows during the course of its 44-year history. Throughout that time, the company has grown and assisted clients in achieving their investment goals. �In each portion of the cycle we gather strength, expertise and contacts.
We are able to serve our clients best interests regardless of economic
highs or lows,� says President Robert Koger. �The results we achieve are
directly attributable to the commitment and expertise of our professional
staff.�
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Molinaro Koger
Sharon Lemon
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