News for the Hospitality Executive
Interstate Hotels & Resorts Takes Minority Ownership
Interest in the Former Radisson Plaza Hotel
Lexington; Kentucky; Planning a $13 million Renovation and Rebranding to Hilton
ARLINGTON, Va., August 4, 2008—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent operator of full- and select-service hotels, today announced that it had formed a joint venture with an affiliate of Madison W Properties, LLC to recapitalize the existing ownership of the former Radisson Plaza Hotel Lexington in Kentucky and the adjacent 234,000 square foot, class-A office building. Upon the transition, the hotel was renamed the Lexington Downtown Hotel & Conference Center.
The 367-room hotel will begin a comprehensive $13 million renovation encompassing guest rooms and public space, as well as the restaurant. Following completion of the renovation, the hotel will be reflagged as a Hilton. The hotel currently is managed by Interstate, who will operate the property as an independent until the hotel is reflagged.
“This is our forty-ninth property in which we hold a minority ownership interest and our first with Madison,” said Thomas F. Hewitt, Interstate chief executive officer. “We know this property well and believe it has considerable long-term potential, given its excellent downtown location and proximity to the convention center. Those advantages, combined with the planned comprehensive renovation and rebranding as a Hilton, should position this hotel to become a leader in this market.”
“Interstate is a proven operator with a successful track record, and we look forward to establishing a long-term relationship with them,” said Peter C. Lewis, president of Madison W Properties. “Their depth of experience in the meeting and conventions subsegment adds another dimension, making them a compelling partner in this particular venture. We look forward to exploring other opportunities with them.”
Located at 369 West Vine Street, the 15-story Lexington Downtown Hotel & Conference Center is situated just across from Rupp Arena and the Lexington Convention Center, and is convenient to Blue Grass Airport, Keeneland Race Track, University of Kentucky, and the Kentucky Horse Park. The hotel is connected via skywalks to the Lexington Center and Rupp Arena, as well as the shops at Victorian Square.
The hotel’s amenities include a pool, fitness center, restaurant and lounge, and 14,000 square feet of meeting facilities, including a grand ballroom that accommodates up to 1,000 people. All guestrooms feature complimentary high-speed Internet access, Sleep Number® Beds and executive-size desks. The hotel’s Bigg Blue Martini is a favorite night hot spot in Lexington, and its Café on the Park on-site restaurant features local cuisine created by an award-winning chef.
About Madison W Properties, LLC
Madison W Properties, LLC is a real estate investment company that has acquired in excess of $130 million of properties since its inception in 2008. The company focuses on value-added opportunities throughout the United States. Madison W Properties, LLC is an affiliate of Madison Capital Management, LLC, an investment management firm with more than $540 million under management, and over $830 million invested to date. For more information, visit www.madisoncap.com.
Interstate Hotels & Resorts has ownership interests in 56 hotels and resorts, including seven wholly owned assets. Together with these properties, the company and its affiliates manage a total of 221 hospitality properties with nearly 46,000 rooms in 36 states, the District of Columbia, Russia, Mexico, Belgium, Canada and Ireland. Interstate Hotels & Resorts also has contracts to manage 16 to be built hospitality properties with approximately 3,800 rooms. For more information about Interstate Hotels & Resorts, visit the company’s Web site: www.ihrco.com.
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, 2007.
|Also See:||The Procaccianti Group Spending $16.4 million on Facelift for 30 Year Old Hyatt Regency Lexington / January 2007|