from Starwood Hotels & Resorts for $23.3 million, or $150,000 per key
PALM BEACH, Fla., August 7, 2006—Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT) and a leading owner of upscale properties throughout the United States, today announced that it has entered into an agreement to acquire the 155-room Sheraton Rockville in Maryland from Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) for $23.3 million, or $150,000 per key, in a deal negotiated directly with Starwood. The hotel is under construction and is expected to open in October 2006. The acquisition will be funded with borrowings under the company’s unsecured line of credit, and the hotel will fly the Sheraton flag under a long-term franchise agreement.
Innkeepers Hospitality Management, which is owned by Jeffrey H. Fisher, chief executive officer of Innkeepers USA Trust, will manage the hotel under a long-term management agreement. The acquisition, which is expected to close in the 2006 fourth quarter, is subject to a number of customary contractual closing conditions.
“The Sheraton Rockville is our first acquisition from Starwood, one of the world’s most respected hotel companies, and we look forward to building on that relationship in what we hope to be many strategic acquisitions or developments with the Starwood family of brands,” said Jeffrey H. Fisher, Innkeepers chief executive officer and president. “As the only Starwood branded hotel in the immediate market, the hotel will be well suited to meet the demands of the tenants of the more than 12 million square feet of office and research space within a three-mile radius of the hotel.”
Situated 5.5 miles north of Washington, D.C.’s Capital Beltway in Rockville, Md., the five-story hotel is located in the master-planned, mixed-use development of King Farm, an award-winning community.
“This is a strong lodging market, where half the current supply is more than 10 years old, which we believe will give us an added competitive advantage,” Fisher added. “Additionally, we expect the hotel to capitalize on the continuing expansion of Irvington Center office park, also part of King Farm, where 3,200 residential units, 12,000 square feet of retail, 920,000 square feet of Class A office space are already constructed and a total of 1.7 million square feet will be built.”
With 103 king rooms and 52 double rooms, the property features a 45-seat, three-meal restaurant; three 500-square-foot meeting rooms; indoor pool; and health club. Each guest room will feature the Sheraton Sweet Sleeper(SM) Bed, known for its comfort with its plush top mattress, down pillows, crisp sheets and plump duvets. The hotel also features a Sheraton Club Floor level, which will offer a private, comfortable setting with upgraded amenities and personalized concierge services for the busy executive.
Sheraton, the largest brand of Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) has more than 394 hotels in 65 countries.
Innkeepers USA Trust owns 70 hotels with a total of 8,818 suites or rooms in 20 states and Washington, D.C., and focuses on acquiring or developing premium-branded upscale extended-stay and select-service hotels, the core of the company’s portfolio; selected full-service hotels; and turn-around opportunities for hotels that operate under or can be converted to the industry’s leading brands.
This press release, and other publicly available information on the Company, includes forward looking statements within the meaning of federal securities law.
|Also See:||Innkeepers USA Trust Acquiring from an Affiliate of RLJ Development Four California Hotels for $215 million, or $231,000 per room / July 2006|
|Innkeepers USA Trust Acquires the 224-room Westin Governor Morris hotel in Morristown, N.J. for Approximately $35.1 million / May 2005|