Interstate Hotels & Resorts Forms Joint Venture with Harte Holdings of Ireland, Signs Agreement to Acquire Four-hotel Portfolio
2007年12月4日 - 10:30PM
PRニュース・ワイアー (英語)
ARLINGTON, Va., Dec. 4 /PRNewswire-FirstCall/ -- Interstate Hotels
& Resorts (NYSE:IHR), a leading hotel real estate investor and
one of the nation's largest independent operators of full and
select-service hotels, today announced that it had formed a joint
venture with Harte Holdings of Cork, Ireland. The joint venture
signed a definitive agreement to acquire four hotels from
affiliates of The Blackstone Group for an aggregate price of $207.8
million. Interstate will invest approximately $11 million for a 20
percent equity interest in the four hotels. Interstate will fund
the acquisition with available cash and capacity under its senior
revolving credit facility. The transaction is expected to close in
the first quarter of 2008. The four properties included in the
joint venture acquisition are: Property Rooms Location Sheraton
Frazer Great Valley 198 Frazer, PA (Phila MSA) Sheraton Mahwah 225
Mahwah, NJ Latham Hotel Georgetown 142 Washington, DC Hilton
Lafayette 327 Lafayette, LA Total: 892 Interstate currently manages
three of the properties and previously managed the Latham hotel for
the Blackstone Group and MeriStar Hospitality. Upon closing,
Interstate will manage all four hotels under new management
agreements. The partnership plans to invest more than $30 million
of additional funds for renovations on the hotels over the 24
months following the acquisition, with Interstate's contribution
expected to be approximately $2 million. "This joint venture
represents a continuation of our hotel real estate ownership
strategy and expands our JV partner universe," said Thomas F.
Hewitt, Interstate's chief executive officer. "The four-hotel
portfolio was attractively priced, at or below replacement costs,
and aligns well with our portfolio of wholly owned and JV real
estate holdings. "The hotel package includes two key upscale,
full-service brands, Hilton and Sheraton, and a well-recognized
independent boutique hotel in Georgetown that offers significant
repositioning opportunity," Hewitt added. "Three of the properties
are located in key urban and major suburban markets with strong
barriers to entry-Washington, D.C., northern New Jersey, and the
Philadelphia area. The fourth property, the Hilton in Lafayette,
La., is having an exceptional year with RevPAR growth in excess of
20 percent, and we expect the hotel to provide strong, stable cash
flow going forward. With the anticipated capital investment, this
entire portfolio has considerable upside operating potential." "As
one of the few management/ownership companies with a strong and
growing international presence, we will continue to seek global
opportunities and relationships," said Leslie Ng, Interstate's
chief investment officer. "Harte Holdings is a highly regarded
Irish investment and development company which owns a wide variety
of real estate projects in the United Kingdom, Ireland and mainland
Europe, and we look forward to exploring other opportunities
together, both domestically and abroad." "This is our first hotel
joint venture in the U.S., and Interstate, with its successful
track record, its management expertise, and the advantages afforded
by its size, represents a very strong partner," said Donal
Kelleher, investment director of Harte Holdings. "We look forward
to expanding our relationship with other similar opportunities."
About Harte Holdings Harte Holdings is an Irish-based investment
and development company which owns a wide variety of real estate
projects in the United Kingdom, Ireland and mainland Europe, with a
portfolio consisting primarily of hotels, residential, commercial
and retail assets in these areas. About Interstate As of November
30, 2007, Interstate Hotels & Resorts owned seven hotels and
had a minority ownership interest through separate joint ventures
in 22 hotels and resorts. Together with these properties, the
company and its affiliates manages a total of 192 hospitality
properties with more than 43,000 rooms in 36 states, the District
of Columbia, Belgium, Canada, Ireland, Mexico and Russia.
Interstate Hotels & Resorts also has contracts to manage 15
hospitality properties with approximately 4,400 rooms currently
under construction. For more information about Interstate Hotels
& Resorts, visit the company's Web site: http://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, 2006.
Contact: Carrie McIntyre SVP, Treasurer (703) 387-3320 DATASOURCE:
Interstate Hotels & Resorts CONTACT: Carrie McIntyre, SVP,
Treasurer of Interstate Hotels & Resorts, +1-703-387-3320 Web
site: http://www.ihrco.com/
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