News for the Hospitality Executive
Shaner Hotels Forms Partnership with an Investment Fund
Managed by Rothschild Realty;
Up to $200 million of Debt and equity Available for Up to Fifteen
new Marriott-branded Hotels
|STATE COLLEGE, PA (November 30, 2007) - Shaner Hotel Group
announced today that it has formed a new partnership with Five Arrows Realty
Securities IV, L.P. (Five Arrows) for the primary purpose of developing
Marriott hotel franchisees throughout the eastern half of the United States.
The new partnership, Shaner Hotel Holdings Limited Partnership (SHHLP), consists of hotel interests from Shaner Hotel Group (SHG), a private company owned by Lance T. Shaner, and a capital commitment by Five Arrows. The contributed assets are comprised of twelve existing operating hotels from SHG, including a newly-constructed Marriott Courtyard in Jacksonville, Florida and Marriott Courtyard in Mechanicsburg, Pennsylvania. Shaner, together with its affiliates, own and manage 23 hotels, with an aggregate of over 3,500 rooms located in 14 states.
Shaner Hotel Holdings Limited Partnership will invest approximately $200,000,000 of debt and equity for the development and construction of twelve to fifteen new Marriott-branded hotel properties, including Residence Inn, Courtyard by Marriott and Fairfield Inn and Suites. Target geographic markets for these new developments are in the Northeast and Southeast United States. SHHLP currently has five properties in its development platform under construction in northern and central Florida.
Five Arrows is an investment fund managed by New York-based Rothschild Realty Managers LLC, a leading provider of growth capital to public and private real estate companies. As part of the transaction, Pike Aloian and John McGurk, Principals of Five Arrows, will be joining the board of SHHLP.
"We are excited about the formation of this new partnership with Shaner," said Pike Aloian of Rothschild Realty. "Shaner has a history of both outstanding development and operational excellence."
Lance T. Shaner, Chairman and CEO of Shaner Hotel Group said, "We are excited about this new partnership with Five Arrows and confident we will be successful in developing quality hotel projects. The formation of Shaner Hotel Holdings Limited Partnership with Five Arrows will provide working capital to build on this foundation, and to apply the management techniques that have enabled many of our properties to win awards for guest satisfaction and profitability within their brand systems," continued Shaner. "We are also proud of our history of playing an active role and giving back to the communities in which we do business."
About Rothschild Realty Managers:
Michael J. Russell
|Also See:||Shaner Hotels Establishes $100,000 Endowed Scholarship at The University of Delaware Department of Hotel, Restaurant and Institutional Management / November 2007|
|The Shaner Hotel Group Forms Alliance with Essex Partners; Will Provide Accounting Services for Essex's 18 Hotels / February 2003|