MeriStar Investment Partners, a $400 million investment partnership, today announced that it has acquired the 323-room Marriott Hotel in Trumbull, Conn. The property is the fifth hotel acquired by the recently formed partnership, which plans to purchase a total of 12 to 15 hotels over the next year. Participants in the joint venture investment partnership include MeriStar Hospitality Corporation (NYSE:MHX), the nation`s third largest hotel real estate investment trust (REIT), MeriStar Hotels & Resorts, Inc. (NYSE:MMH), the nation`s largest independent hotel management company, and Oak Hill Capital Partners, L.P., a private equity investment group. The partnership will invest approximately $5 million to renovate the property.
``The Trumbull Marriott is one of the premier properties in the Fairfield County market, an area known for its numerous major corporate headquarters,`` said Paul Whetsell, chairman and CEO for both MeriStar Hospitality and MeriStar Hotels & Resorts. ``This acquisition will benefit all three members of the partnership and is expected to be immediately accretive to both publicly held companies.``
Located at 180 Hawley Lane, directly south of the Merritt Parkway and Route 8, the hotel consists of a five-story, mid-rise structure and an attached one-story commercial-style building. The Trumbull Marriott provides nearly 14,000 square feet of meeting space, indoor and outdoor swimming pools with summertime bar service, a state-of-the-art fitness center, as well as five food & beverage outlets.
MeriStar Hotels & Resorts will manage the hotel and the $5 million renovation program. All guestrooms will receive new case goods, soft goods, lighting and artwork. A new concierge level with upgraded guest rooms and a private lounge will be created on the fifth floor. The lobby, corridors, and the bulk of the remaining public spaces will be outfitted with new soft goods, and mechanical systems will be upgraded throughout the property.
``MeriStar Hotels manages three other hotels in the area and will be able to take advantage of substantial economies of scale in management, purchasing and marketing,`` Whetsell said. ``The combination of MeriStar`s stable, focused management and the extensive renovation will strengthen the Trumbull Marriott`s position as a market leader.``
Oak Hill Capital Partners, L.P. is a newly formed $1.5 billion private equity partnership sponsored by Robert M. Bass and his team of investment professionals. Oak Hill Capital Partners makes significant investments in the form of acquisitions, build-ups, recapitalizations, restructurings, strategic joint ventures and minority stakes across a wide range of industries. Oak Hill Capital Management, Inc., based in New York, New York and Menlo Park, California, manages the partnership.
MeriStar Hotels & Resorts leases or manages 216 hotels with 45,313 rooms in 34 states, the District of Columbia, Canada and the U.S. Virgin Islands.
MeriStar Hospitality Corporation owns 117 principally upscale, full-service hotels in major market and resort locations with 29,468 rooms in 27 states, the District of Columbia and Canada. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Westin, Radisson and Doubletree.