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of 270-room Embassy Suites Hotel Phoenix-Scottsdale for $33 Million |
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 COVINGTON,
Ky. - Feb. 25, 2005 -- Eagle Hospitality Properties Trust, Inc. (NYSE:
EHP) today announced it has closed the previously announced acquisition
of the 270-room Embassy Suites Hotel Phoenix-Scottsdale in Phoenix, Arizona,
from UP Stonecreek LLC for $33 million in cash plus approximately $500,000
in closing costs. The Company expects to invest an additional $600,000
during the first six months of ownership. The hotel will be managed by
Commonwealth Hotels under a 10-year incentive management agreement that
commences at a fee of 2.5% of gross revenues. Secured Capital Corp. acted
as advisor on the transaction.
The Company will fund the acquisition with its available cash and a loan of $22.1 million with US Bank. The three-year loan bears interest at a rate of 215 basis points over 30-day LIBOR and is interest only for the first two years. Bill Blackham, President and Chief Executive Officer of Eagle, noted, "A resort-like setting including on-site golf provides the Embassy Suites Hotel Phoenix-Scottsdale customer an upper-upscale alternative to more expensive resorts in a market that experienced sizable RevPAR growth in 2004." Brian Guernier, Senior Vice President - Acquisitions adds, "The hotel currently has a balanced mix of leisure, corporate and group business. Combined with Commonwealth Hotels' reputation for expense controls and margin improvements, a more aggressive and focused effort to market the hotel's large meeting space and unique setting to build the corporate and group business, and the growth industry experts are projecting for the Phoenix market, we expect to substantially improve the RevPAR and operating performance of this hotel." Situated on Stonecreek Golf Club, home of the annual LPGA Mitsubishi Pro Am, and located near the 1.2 million-square-foot Paradise Valley Mall, the hotel features Mission-influenced furnishings, step-out balconies and patios with many suites featuring views of the golf course and Phoenix Mountain Reserve, galley kitchens and high-speed Internet access in all 270 suites. Opened in March 2000, the Embassy Suites Hotel Phoenix-Scottsdale has preferred access to Stonecreek Golf Club and close proximity to 13 other golf courses. The six-story property also features 14,000 square feet of meeting space, including a 6,100-square-foot ballroom. Additional amenities include a fitness center, outdoor heated pool, 100-seat restaurant, 50-seat lounge and business center. Eagle Hospitality Properties Trust is a real estate investment trust focused on investment opportunities in the full-service and all-suites hotel industry. The Company owns 10 upper upscale full service and all-suites hotels. The hotels are located in Arizona, Colorado, Florida, New York, Kentucky, Ohio and Illinois. Certain matters discussed in this press release,
such as our expected operating performance and acquisition activity, are
forward-looking statements within the meaning of the federal securities
laws.
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| Contact:
Eagle Hospitality Properties Trust, Inc.
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