Newton, MA (July 21, 2003): Hospitality Properties Trust today purchased seven Candlewood Suites Hotels for $65 million. These seven hotels have 888 suites and are located in six states: California (2); Connecticut; Massachusetts; Michigan; New Jersey; and New York. The average age of these hotels is less than three years.
The seven hotels were purchased from Candlewood Hotel Company Fund I, LLC and its subsidiaries, a joint venture between Candlewood Hotel Company, Inc. (OTC: CNDL) and MMBC Equity Member I, LLC in connection with a plan to wind up that joint venture. Simultaneous with this purchase, HPT added these seven hotels to its existing lease for 57 Candlewood Suites hotels with CNDL. When these hotels were added to this existing lease, the rent payable by CNDL to HPT was increased by $6.5 million/year, plus a percentage of operating revenues at these hotels in excess of negotiated amounts. The combined lease for all 64 hotels remains secured by a cash security deposit and a guaranty from CNDL.
HPT funded today`s purchase by using cash on hand and borrowings under its revolving bank credit facility.
Hospitality Properties Trust is a real estate investment trust headquartered in Newton, MA which owned 274 hotels located in 38 states.