| McLean, Virginia � October 1, 2003 � Molinaro Koger announced
today that the firm has closed 46 hotel dispositions valued at $490 million
for clients through the end of Third Quarter 2003. Transactions handled
by the firms have ranged from Europe, the Caribbean and throughout the
United States.
Some of the notable transactions include the Sheraton Crystal City, Virginia, the Hilton Garden Inn and the Hampton Inn Edison, New Jersey, which were sold to Hersha Hospitality Trust, and the Hotel George, Washington, DC to LaSalle Hotel Properties for $172,662 per room. 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 is accelerating. In each quarter of this year we have increased the number of transactions closed by 25% over the previous quarter,� said Robert Koger, president of Molinaro Koger. �The challenges which investors and sellers experienced last year in coming to agreement on value and pricing makes this year�s number of quality hotel transactions significant. We believe this volume demonstrates that well-built, well-located hotels are maintaining desirable operating numbers and that hotel real estate continues to be a sought-after investment.� �We are experiencing strong deal flow, and the average transaction is larger than one year ago,� said Mr. Koger. �A growing number of institutional owners are placing non-strategic assets on the market. We anticipate this to continue in the 4th Quarter of this year as operating fundamentals continue to improve. �Although hotel operations have been impacted by the shifting travel demands, hotel investment is of significant interest to those with access to private capital with confidence in the long-term prospects of the industry. We have been successful in continuing to market and close properties for our clients.� The undoubted higher equity injections currently required of borrowers have placed investors with large reserves of private capital at the lead of the acquisitional pack, according to Mr. Koger. �In 2003 securing financing for U.S. hotel acquisitions has proven somewhat
challenging but more favorable than in 2002,� confirms Mr. Koger. �Our
success in closing properties this year is a testament to our brokers�
tenacity, keen market insight and excellent connections within the lending
community.�
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.� Molinaro Koger can be accessed online at www.molinarokoger.com. |
