News for the Hospitality Executive |
Interstate Hotels Completes Sale of the Hilton Garden
Inn Baton Rouge Airport
to Fairwood Capital for $10.6 million
Proceeds Used to Pay Down Amended Senior Credit Facility ARLINGTON, VA, November 18, 2009 � Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation�s largest independent hotel management company, today announced completion of the sale of the Hilton Garden Inn Baton Rouge Airport to an opportunity fund managed by Fairwood Capital, LLC, for $10.6 million. Proceeds from the sale will be used to pay down the company�s amended senior credit facility that matures in March 2012. Interstate will continue to manage the hotel for the new ownership group. �With this sale, the mortgage financing we recently obtained on our
newly renovated Westin Atlanta and operating cash flow, we have paid down
$35 million of the $40 million required by March 2011 under terms of the
new senior credit facility we secured in July,� said Bruce Riggins, chief
financial officer.
Hilton Garden Inn Baton Rouge Airport 3330 Harding Boulevard, Baton Rouge, Louisiana About Fairwood Capital With offices in Memphis, Tenn. and New York, NY., Fairwood Capital, LLC is a real estate investment firm that invests exclusively in hospitality-related real estate with a focus on premium-branded select service, extended stay and full service hotels. The company was founded by Robert M. Solmson, the former CEO and chairman of RFS Hotel Investors (RFS), and Richard Reiss, Jr., chairman of Georgica Advisors and a former RFS board member. The company pursues a disciplined acquisition strategy and seeks to diversify its portfolio by brand, geographic location and market segment. 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, the company�s ability to maximize available
federal tax deductions and utilize net tax attributes in future periods,
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, 2008.
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Contact:
Carrie McIntyre
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Also See: | Interstate Hotels & Resorts Acquires the 131-room Hilton Garden Inn in Baton Rouge, La. for $14.4 million, $110,000 per key / June 2006 |