In Separate Transactions for $58.5 million
|BETHESDA, Md., January 3, 2005 — MeriStar Hospitality Corporation (NYSE:
MHX), one of the nation’s largest hotel real estate investment trusts (REIT),
today announced that it has sold five hotels, in separate transactions,
for $58.5 million in gross proceeds during the 2005 fourth quarter.
The properties include:
• Hilton Salt Lake City Airport (287 rooms)
“These sales are part of our previously announced asset disposition program which is designed to take advantage of the strong pricing currently realizable in the hotel real estate market,” said Paul Whetsell, chairman and CEO. “We were able to sell these five properties at a 14-times trailing-twelve-month EBITDA multiple on a combined basis. We intend to use the proceeds from our asset disposition program to improve our balance sheet primarily through debt reduction, particularly our 10.5 percent callable senior notes.”
Jones Lang LaSalle Hotels acted as broker on the Hilton Salt Lake City and Hilton Durham, Molinaro Koger brokered the Holiday Inn Madison, Colliers brokered the Crowne Plaza San Jose, and Pinnacle Realty Investments brokered the Doubletree Bradley International Airport.
Separately, the company announced that it had recently completed its relocation to new corporate headquarters in Bethesda, Md. MeriStar’s new headquarters location is:
6430 Rockledge Drive
Bethesda, Md.-based MeriStar Hospitality Corporation owns 64 principally upper-upscale, full service hotels in major markets and resort locations with 18,262 rooms in 20 states and the District of Columbia. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Ritz-Carlton, Westin, Doubletree and Radisson. For more information about MeriStar Hospitality, visit the company’s website: www.meristar.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
|Also See:||John E. Plunket Joins MeriStar Hospitality as Senior Vice President – Real Estate / July 2005|
|Waterford Hotel Group, Inc. Appointed as Manager of the Doubletree Hotel Bradley International Airport / November 2005|