News for the Hospitality Executive
ARLINGTON, Va., August 7, 2007— Interstate Hotels & Resorts (NYSE: IHR), one of the nation’s largest independent hotel management companies, today announced the formation of a joint venture partnership with Indianapolis-based Premier Properties USA, a rapidly growing retail and lifestyle development company, to build three hotels: a Hyatt Place and two aloft Hotels. Each of the properties will be located within a Premier Properties’ lifestyle & retail center, which include high-end retail shops, dining outlets, and entertainment venues. Interstate will invest a 15 percent equity interest in the joint venture and will manage all three properties when they open.
The hotels to be developed are the 114-room Hyatt Place at The Marquis in Williamsburg, Va.; the 136-room aloft at The Metropolis in Plainfield, Ind., near Indianapolis; and the 136-room aloft at The Ven? in Indianapolis.
“This is our 13th joint venture partnership and represents a continuation of our strategic plan to expand our real estate ownership through minority equity positions as a complement to our management contract business, which remains our core business,” said Thomas Hewitt, Interstate’s chief executive officer. “It is also our first joint venture with Premier Properties USA, a highly respected, innovative developer with a proven track record in mixed-use development. The addition of these properties to Premier’s mixed-use centers is an exciting new business model and one we believe has solid growth potential. Premier’s management team has more than 150 years of combined experience in development, construction and leasing, and we look forward to expanding our relationship in the future.”
“These hotel brands were selected because they reflect the lifestyle of the people we want to attract to our developments,” said Chris White, founder and chief executive officer of Premier Properties USA. “The hotels add to the overall ambiance while driving in customers for the retail component. Interstate was a logical choice because of their expertise with lifestyle brands and their willingness to invest alongside us, which we believe will result in superior returns.”
“The ownership of hotels in a mixed-use setting and the addition of our first Hyatt Place and two more aloft Hotels further diversifies our real estate portfolio,” said Leslie Ng, Interstate’s chief investment officer. “Hyatt Place is attracting a great deal of interest within the development community, and we are delighted to be associated early on with what appears to be a runaway hit. Research suggests minimal new supply in these markets for at least the next three years, which we believe translates into excellent growth potential for these properties.”
Hyatt Place at the Marquis, Williamsburg, Virginia
aloft Metropolis at Plainfield, Indiana
About Premier Properties USA
Founded in 1993, Premier Properties USA is an innovative retail real estate development company, primarily focused on shopping center development and known for its original designs and effective merchandising mixes. Premier’s portfolio of distinctive properties includes a number of retail centers that are already open and thriving in their respective locations. Premier’s development pipeline includes both new development and expansion at existing projects that will add more than 60 million square feet to their existing portfolio in 2007 and 2008.
About Interstate Hotels & Resorts
This press release contains “forward-looking statements,”
within the meaning of the Private Securities Litigation Reform Act of 1995,
about Interstate Hotels & Resorts, including those statements regarding
future operating results and the timing and composition of revenues, among
others, and statements containing words such as “expects,” “believes” or
“will,” which indicate that those statements are forward-looking.
Except for historical information, the matters discussed in this press
release are forward-looking statements that are subject to certain risks
and uncertainties that could cause the actual results to differ materially,
including the volatility of the national economy, economic conditions generally
and the hotel and real estate markets specifically, the war in Iraq, international
and geopolitical difficulties or health concerns, governmental actions,
legislative and regulatory changes, availability of debt and equity capital,
interest rates, competition, weather conditions or natural disasters, supply
and demand for lodging facilities in our current and proposed market areas,
and the company’s ability to manage integration and growth. Additional
risks are discussed in Interstate Hotels & Resorts’ filings with the
Securities and Exchange Commission, including Interstate Hotels & Resorts’
annual report on Form 10-K for the year ended December 31, 2006.
|Also See:||Building a Green Hotel - The Challenges of Certification / Jim Butler / June 2007|