Joint Venture Between RockBridge Capital, LLC
and Davidson Hotel Company
COLUMBUS, Ohio and MEMPHIS, Tenn., June 19, 2006 — A joint venture between hotel investment firm RockBridge Capital, LLC and Davidson Hotel Company, the nation’s 12th largest hotel management company, announced today that it has acquired the 393-room Renaissance St. Louis Airport Hotel from an affiliate of Marriott International for an undisclosed amount. Memphis-based Davidson Hotel Company will operate the hotel and oversee a $6 million renovation.
“The hotel is located within a half-mile of Lambert International Airport and is 20 minutes from downtown,” said James T. Merkel, RockBridge managing director. “With more than 37,000 square feet of meeting space, the property offers one of the city’s most comprehensive meeting facilities, capable of handling groups from 10 to 1,200 people. RockBridge will continue to capitalize hotels where it sees opportunity to create value for its investors. We anticipate more investments in first-class, full-service hotels like the Renaissance St. Louis Airport Hotel.
“We have done more than 20 transactions with Davidson, and we have seen strong returns on all of the properties that they have operated for us," he said. “We have great confidence in their renovation expertise, operations capability and ability to generate superior returns. We look forward to expanding our relationship with Davidson.”
“This is the first transaction we have consummated since we recently announced our plans to double in size by 2010,” said John A. Belden, Davidson’s president and chief executive officer. “We have an active pipeline working with a number of world-class institutional investors like RockBridge. We continue to seek opportunities to joint venture as a sliver investor or strictly as a third-party manager.”
The $6 million renovation, which will take place over the next 12 months, will focus primarily on refurbishing the hotel’s extensive meeting facilities and upgrading the health club. The renovation will have no impact on guests and will be essentially invisible to guests. The guest rooms and other public areas recently were upgraded in a $4 million renovation program.
“Marriott was an excellent steward of this property, and we are delighted to be involved with Marriott’s upscale Renaissance brand, which epitomizes fashionable and unique design and signature comfort,” Belden said. “When completed, the hotel will be in ‘like-new’ condition and will be we believe in the finest physical condition of any of the upscale, full-service hotels in our market.”
The 12-story Renaissance St. Louis Airport Hotel, located at 9801 Natural Bridge Road, features 374 rooms and 19 suites. The spacious rooms provide bay window seating areas, work desk and high speed Internet access. The hotel has 12 floors and a lounge to serve its Renaissance Club guests.
T-Bone Trattoria, an Italian Steakhouse is the hotel’s upscale restaurant and features classic Italian specialties, contemporary pasta dishes and steaks. The hotel also features the Curtain Club Bar and the Caffe Espresso coffee house. The hotel has indoor and outdoor heated pools with whirlpool and sun deck, as well as a full-service fitness center.
Meeting facilities include 32 meeting rooms, highlighted by the 11,400-square-foot Grand Concourse Ballroom, capable of accommodating up to 800 people for banquets, and the Renaissance and Penthouse ballrooms located on the hotel’s top floor, offering spectacular views of the airport and surrounding area. The hotel has video conferencing and audio/visual capabilities and a full-service business center.
About RockBridge Capital
With offices in Columbus, Ohio and San Diego, California, Rockbridge provides capital to the hospitality industry through the RockBridge Real Estate Funds. Since 1993, the principals of RockBridge have formed and managed seven closed-end real estate funds with both institutional and high-net-worth investors. RockBridge originates first mortgage and mezzanine loans, as well as preferred equity and equity investments. Since 1993, the RockBridge team has invested more than $800 million in nearly 300 assets nationwide, with aggregate transaction capitalization approaching $4.0 billion. For additional investment and financing opportunities available through RockBridge Capital, contact James T. Merkel at (614) 246-2505.
About Davidson Hotel Company
Headquartered in Memphis, Tenn., Davidson Hotel Company is an award-winning, full-service hotel owner and third-party management company that provides management development/renovation, acquisition, consulting and accounting expertise for the hospitality industry. The company currently owns and/or manages 25 upscale hotels with nearly 7,600 rooms across the United States, including such brands as Hilton, Embassy Suites, Doubletree, Marriott, Renaissance, Westin and Sheraton. Additional information on Davidson may be found at the company’s Web site, www.davidsonhotels.com.
Davidson Hotel Company
|Also See:||Davidson Hotel Company Seeks to Augment its Sliver Equity Focus with Third-Party Management / June 2006|
|Amstar Group, LLC and Davidson Hotel Company Joint Venture to Acquire the 500 room Hilton Alexandria Mark Center for $93.1 million / June 2005|