News for the Hospitality Executive
CLEVELAND, Dec. 9, 2011 -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that it has agreed to sell the 206-room Ritz-Carlton Cleveland hotel at Tower City Center to a subsidiary of Rock Ohio Caesars, LLC, for a total of $36.5 million, including a $2.5 million option payment by Rock pursuant to an option agreement between the two companies. The hotel will remain a Ritz-Carlton under a long-term management contract. The transaction is expected to close December 15, 2011.
"This is an excellent transaction for Forest City," said David J. LaRue, Forest City president and chief executive officer. "The Ritz-Carlton is a premier brand in luxury hospitality, but the hotel is a non-core asset for Forest City. Our strategic focus is on our core office, apartment and retail property types, and in our primary core markets including New York, Washington D.C., Boston, Denver and California."
"With the property under new ownership, The Ritz-Carlton will continue to be a key amenity for Tower City Center and for the casino," LaRue added. "As Rock completes construction of its Horseshoe Casino Cleveland, which is expected to open in March 2012 in our nearby Higbee Building, we believe our Tower City assets will benefit, as will the City of Cleveland and the State of Ohio as a result of the increased tourism, jobs and tax revenues the casino will generate."
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.5 billion in total assets. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.Safe Harbor Language
Statements made in this news release that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The company's actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of current lending and capital market conditions on its liquidity, ability to finance or refinance projects and repay its debt, the impact of the current economic environment on its ownership, development and management of its real estate portfolio, general real estate investment and development risks, vacancies in its properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of our insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of its publicly traded securities, inflation risks, litigation risks, as well as other risks listed from time to time in the company's SEC filings, including but not limited to, the company's annual and quarterly reports.
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