PALM BEACH, Fla., May 3, 2004 � Innkeepers USA Trust (NYSE: KPA), a
hotel real estate investment trust (REIT) and a leading owner of upscale,
extended-stay hotel properties throughout the United States, today announced
that it had agreed to
| acquire the 146-suite Homewood Suites
by Hilton (NYSE: HLT) hotel on San Antonio�s famed Riverwalk for $21 million
to be funded with available cash. It is the REIT�s first property
in San Antonio and represents an expansion of the company�s acquisition
strategy as the hotel industry shows signs of sustainable recovery.
The only all-suite property located directly on the Riverwalk, San Antonio�s
most popular tourist attraction, the unique hotel is housed in the fully
renovated, landmark San Antonio Drug Company building, constructed in 1919
and listed on the |
Homewood Suites Riverwalk
432 W. Market St.
San Antonio, Texas |
National Directory of Historic Places. San Antonio is among the top
10 U.S. cities for overnight leisure travel. Situated in the heart
of downtown, the hotel is within 500 yards of the city�s newly renovated
convention center, which hosts 300 to 400 events each year, is less than
a mile away from the Alamodome and the Alamo and is about eight miles from
the airport.
�Now that the hotel industry is entering its long-awaited recovery,
we are ramping up our acquisition program,� said Jeffrey H. Fisher, Innkeepers
chief executive officer and president. �We have been disciplined
and are well positioned to take advantage of the growing number of properties
that are coming to market. We are seeing acquisition candidates coming
to market that are more in line with our pricing expectations, and we intend
to be a meaningful buyer.�
Fisher noted that the San Antonio property was the REIT�s first Homewood
Suites acquisition. �We have wanted to add the Homewood Suites brand,
Hilton�s upscale, extended-stay product, to our portfolio for some time.
The brand reached critical mass several years ago and has become a major
force in the segment. We look forward to the opportunity to expand
our relationship with Hilton and other leading brands.�
Peter M. Willis, Innkeeper�s vice president of business development,
said that while upscale extended-stay and premium limited service brands
will remain the core of the company�s portfolio, the company plans to broaden
the REIT�s mix with selected full-service properties, turn-around opportunities
and hotels that are affiliated with, or have the potential to be converted
to, the industry�s top brands. �We have a strong appetite for deals
and are reaching out to owners and the brokerage community.�
The company expects to close on this acquisition in May 2004, subject
to certain customary conditions.
Innkeepers USA Trust is a hotel real estate investment trust (REIT)
and a leading owner of upscale, extended-stay hotel properties throughout
the United States. The company owns 66 hotels with a total of 8,185
suites or rooms in 21 states and focuses on acquiring and/or developing
Residence Inns by Marriott and other upscale extended-stay hotels and the
rebranding and repositioning of other hotel properties.
Cautionary statements set forth in reports filed by the company from
time to time with the Securities and Exchange Commission discuss important
factors impacting, or that could impact, the company and its results or
forecasted results. |
