in Parsippany, New Jersey for $21 million
|NEWTON, Mass. - April 17, 2006 -- Hospitality Properties Trust (NYSE:
HPT) today announced that it has purchased a 150-room Staybridge Suites
hotel in Parsippany, New Jersey for $21 million.
The Staybridge Suites Parsippany is a newly developed hotel located just inside Morris Corporate Center, a large corporate office park along Interstate 80. In addition to the 150 guest rooms, this hotel has approximately 1,000 sq. ft. of meeting space, a library, business center, fitness center and indoor pool.
Simultaneously with this purchase, HPT added this hotel to a long term management contract with a subsidiary of InterContinental Hotels Group, plc (LSE/NYSE: IHG) which includes 30 additional Staybridge Suites hotels and the term of this contract was extended to 2031. HPT's annual minimum incremental return for this hotel, which is guaranteed by IHG, will be initially $1.7 million/year until April 2007 when it will increase to $1.8 million/year. HPT may also receive a percentage of gross revenue increases at this hotel starting in 2009 and the net cash flow after payment of management fees to IHG.
The hotel has been purchased free and clear of all mortgage debt. HPT has funded this transaction by drawing under its unsecured revolving bank credit facility.
Hospitality Properties Trust is a REIT which owns 310 hotels located in 38 states, Puerto Rico, and Canada. HPT is headquartered in Newton, Massachusetts.
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS.
Hospitality Properties Trust
|Also See:||The 88th and 89th Staybridge Suites Hotels Open in Las Cruces, New Mexico and Newark, Delaware / February 2006|
|Hospitality Management Corporation Opens $8.5million Staybridge Suites in Brownsville, Texas / January 2006|
|Staybridge Suites Enters the United Kingdom Market; InterContinental Hotels Signs Two Management Agreements for New Build Staybridge Suites / April 2005|