Sierra Suites® Portfolio
|McLean, VA – May 12, 2005 – Molinaro Koger announced today their role
as advisor to LodgeWorks in the sale of a portfolio of 16 Sierra Suites®
Hotels to HVM L.L.C., the operator of Extended Stay Hotels. The properties
will immediately be re-flagged as Extended Stay Deluxe®, a new brand
being debuted by Extended Stay Hotels. The Sierra Suites Hotels included
in the sale are located in Phoenix, Arizona; Pleasanton and San Jose, California;
Orlando, Florida; Atlanta, Georgia; Boston, Massachusetts; Piscataway,
New Jersey; Fairfax and Chantilly, Virginia; and Seattle, Washington.
“Without doubt, we are extremely pleased to have structured this complex transaction which meets the strategic goals of two major hospitality companies,” said Robert Koger, President of Molinaro Koger.
“It is an honor to assist LodgeWorks in obtaining capital for future growth and to work with HVM in securing the infrastructure to launch a vital new brand. 2005 continues to be a dynamic year for hotel real estate transactions, brand and company growth,” said Mr. Koger.
“Beginning to end, the sale transaction was completed in 60 days much to the credit of the Molinaro Koger team,” said B. Anthony (Tony) Isaac, President of LodgeWorks - Sierra Suites Hotels’ parent company. They effectively kept the process moving and enabled the buyer and seller to reach agreement quickly. We are sad to say good-bye to these 16 terrific hotels and especially the talented teams who will, by and large, remain with those hotels to continue serving valued guests. At the same time, it was important to clearly define our portfolio moving forward. Our focus is on developing and growing our next-generation, hotel product into a lifestyle brand that is desired by the upscale consumer.”
The five hotels that remain in the Sierra Suites Hotels collection were designed as flagship locations for the brand’s next-generation launch. With smart, upscale design and service, these hotels signal a major shift for the brand and a fresh all-suite option for travelers. The properties are located in Atlanta-Alpharetta, GA, Branchburg and Parsippany, N.J., and San Ramon and Santa Clara, Calif. LodgeWorks plans to accelerate the growth of this brand with development plans calling for 2006/2007 openings in Downtown Napa, California; Dulles Airport-Sterling, Virginia; Fishkill, New York; Savannah-Historic District, Georgia; Long Beach at the Pike at Rainbow Harbor, California; and Seattle-Bellevue, Washington. For more information visit www.sierrasuites.com or call 800.4.SIERRA.
“We are delighted to add 16 hotels into the Extended Stay Hotels collection and launch our newest brand, Extended Stay Deluxe,” said Gary DeLapp, President and Chief Executive Officer. “With this acquisition, we now offer guests an upgraded mid-scale product as part of our portfolio of more than 670 hotels. We plan to grow the Extended Stay Deluxe brand aggressively throughout the rest of this year toward our goal of 100 locations by the end of 2005. Response to all our extended-stay brands has been very favorable, and we anticipate continued growth to further reinforce our position as the leader in the long-term stay category.”
The 16 former Sierra Suites/new Extended Stay Deluxe hotels possess enhanced amenities such as larger, more upscale rooms, interior corridors, and expanded in-room TV packages, as well as fully equipped kitchens and guestroom workspaces with wireless Internet access and personalized voicemail.
For further information about this transaction and current listings, please contact Molinaro Koger at 703.760.9600 or via www.mkhotels.com.
About Extended Stay Hotels.
About Sierra Suites Hotels
About Molinaro Koger
Molinaro Koger is an international hotel real estate advisory firm. The company structures hotel transactions of boutique through luxury market segment assets throughout the Americas and Europe. MK is headquartered in metro-Washington, DC, and has offices in London, Atlanta, Chicago, Cincinnati, Dallas, Los Angeles and Phoenix. Over the past decade the firm has captured the industry’s leading hotel transaction awards including Highest Volume, Largest Transaction and Salesman of the Year.
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 45-year history. Through this time, the company has grown and assisted clients in achieving their investment goals.
“With each lodging real estate cycle we gather strength, expertise and contacts enabling us to better serve our clients best interests, regardless of economic highs or lows,” says President Rob 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.mkhotels.com.
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