at Logan International Airport for $53.4 million, Will be Managed
by Prism Hotels & Resorts
Ky - July 21, 2006 -- Eagle Hospitality Properties Trust, Inc. (NYSE:EHP)
today announced it has acquired the Embassy Suites Boston at Logan International
Airport for $53.4 million. The 273-room full-service all-suite hotel opened
in 2003 and is the only Embassy Suites branded hotel in Boston. The hotel
will continue to be operated pursuant to an Embassy Suites franchise agreement
and will be managed by Prism Hotels & Resorts.
The hotel features 273 guestroom suites, approximately 5,000 square feet of meeting space, a 2,400 square foot ballroom, a 180 space on-site parking facility, a restaurant and lounge, an indoor pool, and a fitness center.
"We are extremely pleased to complete this acquisition in Boston, a high barrier-to-entry market that we have been targeting for some time," said Bill Blackham, President and Chief Executive Officer of Eagle Hospitality. "The Boston market is clearly in the early stages of an expansionary phase. The recent completion of the Boston Convention Center, the continuing expansion and modernization of Logan International Airport, and the redevelopment of the South Boston Waterfront has helped re-establish the city as one of the premier urban markets in the country. As the only all-suite product in the airport submarket, the hotel is uniquely positioned to capture business from a diverse customer base, including both corporate and leisure travelers, as Boston continues to recover."
The Embassy Suites Boston is located next to Logan International Airport, a center of recent extensive development activity as well as a source of steady hotel demand. The hotel is also just minutes from downtown Boston, the 1.7 million square foot Boston Convention & Exhibition Center, the Boston Financial District, the Bayside Expo & Executive Conference Center, the Black Falcon Cruise Terminal and the USS Constitution. Access to downtown Boston's myriad of visitor attractions and 58 million square feet of office space is facilitated by the Blue Line "T" station, which is located steps from the hotel.
"The Embassy Suites Boston fits squarely in our investment strategy of acquiring high-quality hotels in high barrier-to-entry urban and select resort markets," noted Brian Guernier, Senior Vice President of Acquisitions of Eagle Hospitality. "We were able to acquire this asset below replacement cost in a market which continues to experience new construction constraints."
Eagle Hospitality believes that value enhancement opportunities at the hotel can be achieved through improved yield management, more aggressive sales and marketing efforts, as well as the implementation of a comprehensive cost containment program.
Prism Hotels & Resorts was selected to manage the hotel because of their urban hotel experience, as well as their substantial turnaround expertise, as evidenced by the more than 100 hotels they have managed over the last five years.
"Prism has an extraordinary track record of managing turnaround opportunities which makes them uniquely qualified to maximize the potential of this hotel," advised Mr. Blackham. "We look forward to future opportunities we believe will result from the addition of this high quality manager to our growing portfolio."
Prism Hotels & Resorts' CEO, Steve Van, said "We are thrilled to develop this new relationship with Eagle Hospitality. We are confident that our significant experience and knowledge in the industry will benefit the Embassy Suites Boston."
The acquisition was funded utilizing the Company's senior unsecured credit facility. As a result of this transaction, the Company currently has approximately $78 million outstanding on its $110 million unsecured credit facility. This credit facility can be increased to $200 million at the Company's option. Consistent with the Company's acquisition and disposition strategy, the Company anticipates selling a stabilized hotel(s) during the second half of 2006.
Dallas based Prism Hotels & Resorts is one of the fastest-growing full service hotel investment, management and development companies in the country. The company currently manages over 6,000 rooms for multiple owners in 11 states and the Caribbean.
Eagle Hospitality Properties Trust, Inc. is a real estate investment trust focused on investment opportunities in the full-service and all-suite hotel industry. The Company owns 13 upper upscale full-service and all-suite hotels encompassing approximately 3,600 guestrooms. The hotels are located in Arizona, California, Colorado, Florida, Massachusetts, New York, Kentucky, Ohio, Illinois and Puerto Rico.
Certain matters discussed in this press release, such as our expected operating performance, financing, acquisition and disposition activities, and the recovery and expansion of economic activity in Boston are forward-looking statements within the meaning of the federal securities laws.
Eagle Hospitality Properties Trust, Inc.
|Also See:||Eagle Hospitality Properties Trust Acquires the 351 room Hilton Glendale for $79.8 Million from Hilton Hotels Corporation; Hilton Will Continue to Manage the Hotel / June 2005|
|Pinnacle Realty Investments the Exclusive Advisor in Securing $47 million in Proceeds for the Refinancing of the 273 room Embassy Suites Hotel at Logan International Airport / April 2004|